ACT ON BANKS AND AMENDING CERTAIN LAWS · 1 ACT ON BANKS AND AMENDING CERTAIN LAWS The full text of...

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ACT ON BANKS

AND AMENDING CERTAIN LAWS

The full text of Act No483/2001 Coll. of 5 October 2001 on banks (and amending certain

laws), as amended by Act No430/2002 Coll., Act No 510/2002Coll., Act No165/2003Coll., Act

No603/2003Coll., Act No215/2004Coll., Act No 554/2004Coll., Act No747/2004Coll., Act

No69/2005Coll., Act No340/2005Coll., Act No341/ 2005Coll., Act No 214/2006 Coll., Act

No 644/2006 Coll., Act No 209/2007 Coll., Act No 659/2007 Coll., Act No 297/2008 Coll.,

Act No 552/2008 Coll., Act No 66/2009 Coll., Act No 186/2009 Coll., Act No 276/2009

Coll., Act No 492/2009 Coll., Act No 129/2010 Coll., Act No 46/2011 Coll., Act



Coll., Act No 352/2013 Coll., Act No 213/2014 Coll., Act No 371/2014 Coll., Act

No 374/2014, Act No 35/2015 Coll., Act No 252/2015 Coll., Act No 359/2015 Coll., Act



Coll., Act No 299/2016 Coll., Act No 315/2016 Coll., Act No 2/2017 Coll. and Act No

264/2017 Coll.

The National Council of the Slovak Republic has adopted this Act:

SECTION I

PART ONE

BASIC PROVISIONS

Article 1

This Act governs certain relations associated with the establishment, organisation,

management, business operations, and termination of banks in the territory of the Slovak

Republic and certain relations associated with the operation of foreign banks in the territory of

the Slovak Republic in order to regulate and supervise banks, branches of foreign banks, and

other entities with the objective of ensuring the smooth functioning of the banking system.

Article 2

(1) A bank is a legal person established as a joint stock company1 with a registered

office in the territory of the Slovak Republic, classified as a credit institution in a separate

regulation,1ab

and operating on the basis of a banking authorisation. A bank may not have any

other legal form.

(2) Apart from taking deposits and providing loans, a bank may carry on the

following banking activities, provided they are included in its banking authorisation:

(a) the provision of payment1aa

and settlement services;

1)

The Commercial Code (Act No 513/1991 Coll.), as amended.

1ab) Article 4(1) point 1 of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26

June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation

(EU) No 648/2012 (Official Journal of the EU, L 176, 27.6.2013). 1aa

) Article 2(1) of Act No 492/2009 Coll. on payment services (and amending certain laws).

2

(b) investment activities, investment and auxiliary services under a separate law1a

, and

investment in securities for own account;

(c) trading activities for the bank’s own account;

1. in gold and in money market instruments in euro or foreign currency, including

currency exchange services;

2. in capital market instruments in euro or foreign currency;

3. in precious metal coins, commemorative banknotes and coins, sheets of banknotes

and sets of circulation coinage;

(d) the management of claims on behalf of clients, including advisory services;

(e) financial leasing;

(f) the provision of guarantees2, opening and endorsing of letters of credit

3;

(g) the provision of business advisory services;

(h) the issuance of securities, participation therein, and the provision of related services;

(i) financial intermediation;

(j) the safe custody of assets;

(k) the renting of safe deposit boxes;

(l) the provision of banking information;

(m) special mortgage transactions (hereinafter ‘mortgage transactions’) under Article 67(1);

(n) performance of the functions of a depository under a separate regulation5;

(o) the processing of banknotes and coins;

(p) the issuance and administration of electronic money.

(3) A banking authorisation is an authorisation issued under a separate regulation5a

to

carry on any or all of the banking activities listed in paragraph 2, in the scope specified in that

authorisation and under the terms and conditions stipulated thereby or by this Act and

separate regulations.5b

(4) Where a special authorisation is required for the performance of certain activities

as listed in paragraph 2 under a separate regulation6, a banking authorisation to perform these

activities and the required special authorisation shall be issued in joint proceedings; this shall

not apply to foreign banks, which are subject to the provisions of Articles 11 to 20.

(5) Banking activities as listed in paragraph 2 may also be conducted in the territory

of the Slovak Republic by foreign banks through their local branches which have a banking

authorisation to do so under Article 8 or which are authorised to conduct banking activities

under Articles 11 to 20.

(6) Banks may issue registered shares only in book-entry form; it shall be prohibited

to change the form of shares.

1a

) Article 6 of Act No 566/2001 on securities and investment services (and amending certain laws) (the

Securities Act). 2) Articles 313 to 322 of the Commercial Code.

3) Articles 682 to 691 of the Commercial Code.

5) For example, Act No 594/2003 Coll. on collective investments (and amending certain laws).

5a) Article 4(1) point 42 of Regulation (EU) No 575/2013.

5b) For example, Articles 12 to 34 of Act No 747/2004 Coll., as amended.

6) For example, Act No 594/2003 Coll. and Act No 186/2009 Coll.

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(7) A foreign bank is a credit institution defined in a separate regulation1ab

as a legal

person with a registered office outside the territory of the Slovak Republic, carrying on

banking activities under a banking authorisation issued in its home country.

(8) A foreign bank branch is a branch defined in a separate regulation6a

as a foreign

bank’s organisational unit located in the territory of the Slovak Republic7 and authorised to

take deposits and grant loans directly; all branches established in the Slovak Republic by

a foreign bank based in a Member State of the European Union or in a country belonging to

the European Economic Area (hereinafter referred to as a ‘Member State’) shall be deemed to

constitute a single branch for authorisation purposes.

(9) Banks and branches of foreign banks, except as provided in paragraph 10 may not

engage in business activities other than banking activities.

(10) Banks and branches of foreign banks may perform non-banking activities for

a third person only if these are related to their operations. Such activities shall be subject to

approval by Národná banka Slovenska and shall not be recorded in the Commercial Register.

(11) In connection with the conduct of banking activities, banks and branches of

foreign banks shall also perform tasks assigned by Národná banka Slovenska in the fields of

monetary policy and payments services under separate regulations8.

(12) Banks and branches of foreign banks shall not be subject to any separate law1,

unless this Act provides otherwise.

(13) The provision of payment services shall be subject to a separate

regulation9.(14) Banks and branches of foreign banks may provide financial intermediation

services under a separate regulation.9a

(15) Banks and branches of foreign banks shall provide preferential export loans in

accordance with a separate regulation.9b

Article 3

(1) No person without a banking authorisation may accept deposits, unless a separate

regulation5

provides otherwise. No person without a banking authorisation may pay interest

on, or other compensation for, deposits, which constitutes a tax expense under a separate

regulation.10

6a

) Article 4(1) point 17 of Regulation (EU) No 575/2013. 7) Articles 21(3a), 21(4a), and 28(3) of the Commercial Code.

8) For example, Act No 566/1992 Coll., as amended; Act No 747/2004 Coll. on financial market supervision

and amending certain laws; Act No 492/2009 Coll.; Guideline of the European Central Bank of 31 August

2000 on monetary policy instruments and procedures of the Eurosystem (ECB/2000/7) (OJ, Special

Edition, Chapter 10, Volume 01). 9) Act No 492/2009 Coll.

9a) Act No 186/2009 Coll. on financial intermediation and financial advisory services (and amending certain

laws), as amended by Act No 129/2010 Coll. 9b

) Article 12 of Act No 392/2015 Coll. on development cooperation (and amending certain laws). 10

) Article 19(1) of Act No 565/2003 Coll. on income taxes.

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(2) Unless a separate regulation11

provides otherwise, no person without a banking

authorisation may provide credit and loans within the scope of its business or other activity

using repayable funds obtained from other persons on the basis of a public offer.

(3) No person without a banking authorisation may provide payment services to

another person within the scope of its business or other activity, unless a separate regulation12

provides otherwise.

Article 4

(1) The words ‘bank’ or ‘savings bank’, translations thereof, or words having a root

derived therefrom, may be used in a business name only by a legal person that has been

granted a banking authorisation. Where confusion may arise, Národná banka Slovenska may

request a bank, a foreign bank branch, or other legal person to modify its name; the bank,

branch of a foreign bank, or other legal person concerned shall comply with such request.

(2) The provisions of paragraph 1 shall not apply to legal persons whose business

name or designation is established or recognised by law or by an international treaty binding

upon the Slovak Republic, or where it is evident from the business name that the person using

the word ‘bank’ or ‘savings bank’ in its name does not engage in any of the activities listed in

Article 2(1).

Article 5

For the purposes of this Act, the following definitions shall apply:

(a) ‘deposit’ means entrusted funds or other repayable funds received from the public,

representing a liability towards the depositor to repay them;

(b) ‘loan’ means funds temporarily provided for own account or funds temporarily provided

in any form, including factoring and forfeiting;

(c) ‘bank branch’ means a branch of a bank as defined in a separate regulation6a

, located

within or outside the territory of the Slovak Republic, and authorised to accept deposits

and provide loans directly;

(d) ‘investment in securities for own account’ means the acquisition of securities with the

objective of exercising long-term influence over the activities of a commercial company

and obtaining property and other benefits for a period of at least one year, or the purchase

of bonds13

and their holding from acquisition until maturity;

(e) ‘money market instruments’ means interbank deposits, securities payable within one

year, futures contracts up to one year involving securities maturing within one year and

securities with maturity exceeding one year, other derivatives13a

and yields therefrom,

foreign exchange;

(f) ‘capital market instruments’ means shares, temporary certificates, participation

certificates, and other securities accepted for trading in the stock exchange market13b

with

maturity exceeding one year, including dividends and interest thereon;

(g) ‘financial leasing’ means the leasing of items for an agreed rent for a definite period, paid

usually in regular instalments, with the objective of transferring the ownership of these

items to the lessee;

11

) For example, Act No 124/1996 Coll. on the State Housing Development Fund, as amended. 12

) For example, Act No 492/2009 Coll. and Act No 507/2001 Coll. on postal services, as amended. 13)

Act No 530/1990 Coll. on bonds, as amended.

13a) Article 5(f) to (i) and Article 8(d) of Act No 566/2001 Coll.

13b) Articles 25 to 32 of Act No 429/2002 Coll. on stock exchanges.

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(h) ‘client of a bank or of a foreign bank branch’ means a person with whom a bank or a

foreign bank branch has concluded a transaction as part of its banking business;

(i) ‘banking transaction’ (hereinafter ‘transaction’) means the formation, alteration or

termination of relationships established under the law of obligations between a bank or a

foreign bank branch and its client, and any operation related to the banking business,

including the handling of deposits;

(j) ‘banking information’ means information concerning a bank’s client acquired by the bank

in connection with the conduct of banking activities and provided with the client’s

consent;

(k) ‘public offer’ means any announcement, offer or recommendation made by any person to

collect funds in that person’s favour or in a third person’s favour by any means of

promulgation, including personal contact with several persons, whether with one person

at a time or with several persons at once; for the purposes of this Act, a notification, offer

or recommendation made solely through a personal contact and intended for no more than

ten persons shall not be deemed to be a public offer;

(l) ‘payment card’ means a payment instrument enabling a payment service user to withdraw

funds from the user’s own account up to a limit allowed by the payment service provider;

(m) ‘person’ means any natural or legal person, unless only a natural or only a legal person is

expressly referred to in the individual provisions of this Act;

(n) ‘deposit handling’ means any act of establishing, making, transferring, withdrawing or

cancelling a deposit, assigning or pledging a deposit, restricting the payment of a deposit,

permitting the use of a deposit by another person, as well as any change in the deposit

terms and conditions;

(o) ‘remuneration principles’ means the principles of motivating people in accordance with

Article 23a(1) by means of variable remuneration, the amount and payment of which is

linked to the results achieved in pursuing the bank’s long-term interests;

(p) ‘discretionary pension benefits’ means, for the purposes of adopting and applying the

principles of remuneration, discretionary pension benefits as defined in a separate

regulation13ba

;

(r) ‘financial intermediation’ means the intermediation of money market instruments on the

interbank market, the performance of activities related to own financial services which

are not subject to a separate law13c

.

(s) ‘basic banking product’ means a banking product comprising the following banking

services provided in connection with a payment account13d

:

1. opening, maintaining, and cancelling a payment account denominated in euro;

2. performing the following payment operations:

2a the crediting of euro cash to a payment account;

2b the withdrawal of euro cash from a payment account;

2c non-cash money transfers from or to a payment account in euro;

2ca the execution of payments, including standing orders;

2cb the collection of payments, including direct debits;

2cc the execution of payments through payment cards;

3. issuing international debit cards.

(t) ‘financial sector entity’ means a financial sector entity as defined in a separate

regulation13e

;

(u) ‘regulated market’ means a regulated market as defined in a separate regulation13f

;

13ba

) Article 4(1) point 73 of Regulation (EU) No 575/2013. 13c

) Article 1(2)(a) of Act No 186/2009 Coll. 13d

) Article 708 of the Commercial Code. 13e

) Article 4(1) point 27 of Regulation (EU) No 575/2013. 13f

) Article 4(1) point 92 of Regulation (EU) No 575/2013.

6

(v) ‘leverage’ means leverage as defined in a separate regulation13g

;

(w) ‘competent supervisory authority’ means a competent authority as defined in a separate

regulation13h

;

(x) ‘external credit assessment institution’ means an external rating agency as defined in

a separate regulation13i

;

(y) ‘central bank’ means central bank as defined in a separate regulation13j

;

(z) ‘institution’ means institution as defined in a separate regulation13k

;

(aa) ‘securitisation’ means securitisation as defined in a separate regulation13l

;

(ab) ‘financial institution’ means a financial institution as defined in a separate regulation13m

;

(ac) ‘small or medium-sized legal person’ means a legal person whose annual turnover does

not exceed EUR 50,000,000;

(ad) ‘resident of the European Union’ means a natural person residing or entitled to reside in

a Member State of the European Union under separate regulations13ma

;

(ae) ‘payment account with basic features’ (hereinafter ‘standard account’) means a payment

account including the following banking services provided in connection with a payment

account13mb

:

1. opening, maintaining and cancelling a payment account;

2. performing the following payment operations;

2a. the crediting of euro cash to payment accounts;

2b. the withdrawal of euro cash from payment accounts;

2c. non-cash transfers from or to payment accounts in euro

2ca. the collection of payments, including direct debits;

2cb. the execution of payments, including standing orders;

2cc. the execution of payments through payment cards;

3. issuing payment cards.

(af) for the purposes of Articles 33o to 33z and 62a, ‘group’ means a parent undertaking and

its subsidiaries;

(ag) ‘debtor’s special account’ means a payment account including, but not limited to, the

following banking services related to a payment account:

1. the opening, maintenance, and closing of a debtor’s special account;

2. the execution of the following payment operations:

2a. a one-off deposit or transfer of funds in euro under a separate regulation13mc

;

Article 3(1) of Act No 429/2002 Coll., as amended by Act No 209/2007 Coll.

13g) Article 4(1) point 93 of Regulation (EU) No 575/2013.

13h) Article 4(1) point 40 of Regulation (EU) No 575/2013.

13i) Article 4(1) point 98 of Regulation (EU) No 575/2013.

Act of the National Council of the SR No 566/1992 Coll., as amended. 13j

) Article 4(1) points 45 and 46 of Regulation (EU) No 575/2013. 13k

) Article 4(1) point 3 of Regulation (EU) No 575/2013. 13l

) Article 4(1) point 61 of Regulation (EU) No 575/2013. 13m


Article 49(5)(c) and (d) of Act No 8/2008 Coll. on insurance (and amending certain laws).

Act No 492/2009 Coll., as amended. 13ma

) Act No 253/1998 Coll. on residence reporting and resident registration in the Slovak Republic, as amended.

Act No 480/2002 Coll. on asylum (and amending certain laws), as amended.

Act No 404/2011 Coll. on the residence of foreigners (and amending certain laws), as amended. 13mb

) Article 2(9) of Act No 492/2009 Coll. 13mc

) Article 167o(3) of Act No 7/2005 Coll. on bankruptcy and restructuring (and amending certain laws), as

amended.

7

2b. once per calendar month the withdrawal of funds from a debtor’s special account

in an amount laid down in a separate regulation and at the place where a bank or

a foreign bank branch operates in the Slovak Republic.

PART TWO

GENERAL PROVISIONS ON SUPERVISION

Article 6

(1) The activities of banks and branches of foreign banks shall be subject to

supervision by Národná banka Slovenska.8 The activities of other persons and entities

associated with the operation or management of banks and branches of foreign banks shall

also be subject to supervision in the range stipulated by this Act. Supervision shall be

exercised in the range specified therein over individual banks, branches of foreign banks, or

other entities, as well as over consolidated groups comprising banks and over financial

conglomerates in accordance with Article 49c.

(2) In exercising supervision over a bank or a foreign bank branch, Národná banka

Slovenska shall, in particular, examine and evaluate the organisation, management, division

of responsibilities, strategies, systems and procedures adopted for the performance of

activities as defined in the banking authorisation, information flows, and the risks to which

the bank or foreign bank branch under supervision is or may be exposed; in so doing,

Národná banka Slovenska shall also verify whether the supervised entity has enough own

funds to cover these risks in accordance with Article 29(3). Národná banka Slovenska shall, at

least once a year, carry out an examination and evaluation appropriate to the nature and scope

of the banking activities performed. On the basis of the results thereof, Národná banka

Slovenska shall assess whether the organisation and management of the bank or foreign bank

branch under supervision, the strategies, systems and procedures used in performing the

activities stated in the banking authorisation, and the level of own funds conform to the rules

of prudent management of a bank or a foreign bank branch, and it shall also assess the

adequacy of risk coverage by own funds. On the basis of this assessment, Národná banka

Slovenska shall notify the supervised entity whether its own funds suffice for the coverage of

risks; if there is a shortage of own funds, Národná banka Slovenska shall specify the required

amount of own funds in this notification. In exercising supervision, Národná banka Slovenska

shall duly consider the potential impact of its decisions on the stability of the financial system,

especially in emergency situations as defined in Article 48(8)(c). If, on the basis of an

examination, Národná banka Slovenska finds that a bank or a foreign bank branch represents

a systemic risk, it shall forthwith inform the European supervisory authority (European

Banking Authority)13o

of the results of that examination.

(3) The scope of supervision shall not include the resolution of contractual disputes

between banks or branches of foreign banks and their clients, which shall be heard and settled

by a competent court or other authority under separate regulations14

.

13o

) Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010

establishing a European supervisory authority (European Banking Authority), amending Decision

No 716/2009/EC, and repealing Commission Decision 2009/78/EC (OJ L 331, 15.12.2010). 14

) For example, the Civil Dispute Procedure Code; Act No 244/2002 Coll. on arbitration proceedings, as

amended; and Articles 90 to 95 of Act No 492/2009 Coll.

8

(4) Supervision on a consolidated basis shall not replace the supervision of individual

persons included in a consolidated group, nor shall it replace the supervision of individual

banks and branches of foreign banks under this Act, nor supervision under separate

regulations15

.

(5) The supplementary supervision of financial conglomerates shall not replace

supervision on a consolidated basis, supervision of individual persons included in

a consolidated group, supervision of individual persons included in a financial conglomerate,

supervision of individual banks and branches of foreign banks under this Act, nor supervision

under separate regulations15

.

(6) The exercise of supervision on a consolidated basis or the exercise of

supplementary supervision over financial conglomerates shall not place Národná banka

Slovenska under the obligation to exercise supervision over individual persons included in a

consolidated group or a financial conglomerate, where these persons are not subject to

supervision by Národná banka Slovenska.

(7) Banks and branches of foreign banks shall allow any person who is commissioned

to exercise supervision to attend the general meetings, supervisory board meetings, and

statutory body meetings of the bank, or the management meetings of the foreign bank branch

under supervision.

(8) Responsibility for supervision shall be borne by Národná banka Slovenska.

Persons who exercise supervision on behalf of Národná banka Slovenska shall not be liable to

third persons for the consequences of such supervision; this is without prejudice to their

liability under the provisions of criminal law or to their responsibility towards Národná banka

Slovenska under the labour law regulations.

(9) If, in the course of supervision, Národná banka Slovenska reveals any fact

pointing to the commission of a criminal offence, it shall inform the competent law

enforcement authority without delay.

(10) A supervisory authority of a foreign country may exercise supervision in the

territory of the Slovak Republic over the activities of a foreign bank branch or a foreign

bank’s banking subsidiary solely on the basis of an agreement concluded between Národná

banka Slovenska and the supervisory authority of that country, or under this Act. Národná

banka Slovenska may enter into such agreement solely on a reciprocal basis. A foreign

supervisory authority intending to carry out an on-site inspection in the territory of the Slovak

Republic shall notify Národná banka Slovenska in advance. In conducting such inspections,

the persons commissioned by the foreign supervisory authority shall have the same powers,

duties and responsibilities as the staff members of Národná banka Slovenska authorised to

conduct on-site inspections under a separate regulation;15a

they shall not, however, be obliged

to produce a written protocol on the inspection they carry out, nor to set time limits for the

adoption and implementation of measures to eliminate any shortcomings revealed by the

inspection and to notify the supervised entity of these limits.

15

) For example, Act No 747/2004 Coll., as amended; Act No 566/2001 Coll., as amended; Act No 8/2008

Coll., as amended; Act No 492/2009 Coll., as amended; and Act No 203/2011 Coll. on collective

investment, as amended. 15a

) Articles 6 to 11 of Act No 747/2004 Coll. on financial market supervision (and amending certain laws), as

amended.

9

(11) Národná banka Slovenska may exercise supervision over branches or banking

subsidiaries of banks operating in the territory of a foreign country, if so permitted by the

legal regulations of that country and by an agreement concluded between Národná banka

Slovenska and the competent supervisory authority of that country. The provisions of Articles

23, 23a, 23b, 23e, 24, 25, and 27 shall not apply to subsidiaries of banks according to the first

sentence, where the parent bank based in the European Union or a bank controlled by the

parent financial holding company based in the European Union or the parent mixed financial

holding company based in the European Union proves that such supervision is not allowed by

the legal regulations of the foreign country in question.

(12) The central securities depository or a member of the central securities

depository16

shall, upon request, provide Národná banka Slovenska with any information

from the records they maintain, for supervisory purposes.

(13) In exercising supervision over banks and branches of foreign banks on an

individual or consolidated basis, Národná banka Slovenska shall cooperate with the

competent supervisory authorities of foreign countries, with the Slovak Chamber of Auditors,

with auditors or audit firms17

(hereinafter referred to as ‘auditors’), and with payment system

operators,9 and shall be entitled to exchange information with them and to draw their attention

to deficiencies identified in the course of supervision. The confidentiality obligation as

defined in this Act and separate regulations18

shall not apply to the disclosure of information

pursuant to this paragraph. For the purpose of supervising a bank’s branch established in

another Member State, Národná banka Slovenska shall provide the competent supervisory

authority of that Member State with, in particular, information on the bank’s management and

ownership structure, liquidity management rules, maintenance of own funds, exposure limits,

and other facts that may influence the systemic risk posed by the bank, as well as information

on the bank’s deposit protection system, administrative and accounting procedures, and

internal control procedures. Národná banka Slovenska may notify the European supervisory

authority (European Banking Authority) if its request for cooperation, in particular for

information exchange, is declined or not answered in due time. Národná banka Slovenska

shall provide the competent supervisory authority of the home Member State with any

information and findings concerning supervision of a bank’s liquidity to the extent necessary

for the protection of depositors or investors in the Member State in which the bank has a

branch; where a liquidity problem occurs or may occur, the information provided shall

include data on the planning and implementation of measures adopted within the scope of

supervision. In the case of a foreign bank branch operating in the Slovak Republic, Národná

banka Slovenska shall inform the competent supervisory authority of the home Member State

about the system of deposit protection used in the Slovak Republic. Národná banka Slovenska

may not disclose confidential information received from the supervisory authorities of other

Member States without the consent of the foreign supervisory authority that has provided the

information in question. Národná banka Slovenska may use confidential information received

from other Member States’ supervisory authorities only when performing its tasks and duties

in connection with:

(a) the exercise of supervision over entities by checking and monitoring compliance with the

conditions regarding the taking up and pursuit of business by the entities under

supervision on an individual or consolidated basis, especially in regard to the monitoring

16

) Articles 99 to 111 of Act No 566/2001 Coll., as amended. 17

) Articles 3 to 17 and Articles 34 to 45 of Act No 540/2007 Coll. on auditors, audits and audit oversight (and

amending Act No 431/2001 Coll. on accounting), as amended. 18

) For example, Articles 40 and 41 of Act No 566/1992 Coll., as amended.

10

of their liquidity, capital adequacy, large exposures, administrative and accounting

procedures, and internal control mechanisms;

(b) the imposition of sanctions under this Act or under separate regulations15

;

(c) appeal proceedings taken against the decisions of Národná banka Slovenska;

(d) judicial review of the decisions of Národná banka Slovenska or other judicial proceedings

related to the entities under supervision or to the supervision process.

(14) Where Národná banka Slovenska comes to the conclusion that a branch of a

foreign bank is significant, it shall submit a duly justified application to the home Member

State’s supervisory authority responsible for supervising banks on a consolidated basis or to

the home Member State’s supervisory authority that supervises the parent bank of the said

branch, for confirmation that the foreign bank branch in question is significant; in this regard,

Národná banka Slovenska shall, in particular, take into account:

(a) whether the foreign bank branch holds more than 2% of the total volume of deposits

taken in the Slovak Republic;

(b) the possible impact of operation suspension or termination by the foreign bank on market

liquidity, the payment system, securities settlement system, and payment settlement

system used in the Slovak Republic; and

(c) the size and significance of the foreign bank branch concerned in terms of the number of

clients in relation to the financial system of the Slovak Republic.

(15) In determining whether a foreign bank branch is significant, Národná banka

Slovenska shall cooperate with the supervisory authorities referred to in paragraph 14. If

Národná banka Slovenska and the competent supervisory authority mentioned in paragraph 14

do not agree, within two calendar months of the delivery date of an application made pursuant

to paragraph 14, that the branch in question is significant, Národná banka Slovenska shall,

within two calendar months of the expiry of this period, determine whether the said foreign

bank branch is significant. In so doing, Národná banka Slovenska shall take into account any

views and reservations of the supervisory authority referred to in paragraph 14. If, within two

months of the delivery date of an application made pursuant to paragraph 14, the supervisory

authority referred to in paragraph 14 requests the European supervisory authority (European

Banking Authority) to provide assistance in negotiating an agreement under a separate

regulation19

, Národná banka Slovenska shall determine whether the foreign bank branch in

question is significant in line with the decision of the European supervisory authority

(European Banking Authority). If the European supervisory authority (European Banking

Authority) fails to issue such decision within one month of the delivery date of a request for

assistance, Národná banka Slovenska shall determine independently whether the foreign bank

branch in question is significant. Národná banka Slovenska shall forward any information

indicating that the foreign bank branch is significant, backed by adequate justification, to the

supervisory authority referred to in paragraph 14. The assessment of a foreign bank branch as

significant shall have no influence on the rights and obligations of Národná banka Slovenska

under this Act or other related generally binding legal regulations.

(16) Národná banka Slovenska shall provide the competent supervisory authority of

the Member State in which a bank’s branch has been assessed as significant with information

pursuant to Article 48(9)(c) and (d) and, in cooperating with that supervisory authority, it

shall proceed in accordance with Article 48(7)(c). If Národná banka Slovenska learns that the

parent bank in question is in a critical situation under Article 48(1), it shall forthwith notify

the competent supervisory authority of the Member State in which the bank’s significant

19) Article 19 of Regulation (EU) No 1093/2010.

11

branch is located, as well as another public authority in this Member State having information

about this branch. Národná banka Slovenska shall notify the competent supervisory authority

of the Member State in which the significant branch is located of the results of risk

assessment carried out pursuant to paragraph 2, as well as of its own decisions taken under

Article 50 in a range that is relevant for this branch. Národná banka Slovenska shall also

consult the competent supervisory authority about the imposition of liquidity risk mitigating

measures if relevant.

(17) Where Národná banka Slovenska is not commissioned to act as a supervisory

authority responsible for exercising supervision on a consolidated basis in accordance with

Article 48(9) and (10) and where Národná banka Slovenska exercises supervision over a bank

with a branch, classified as significant, in another Member State, Národná banka Slovenska

shall:

(a) set up and chair a working group of supervisory authorities (hereinafter: ‘working group’)

in order to facilitate cooperation under paragraphs 13 and 16;

(b) determine which supervisory authority is competent to participate in the meetings and

activities of the working group;

(c) take into account the importance of supervisory activities that are to be planned or

coordinated and, in particular, their possible effects on the financial system’s stability

under paragraph 2 and on the obligations referred to in paragraph 16;

(d) inform fully and well in advance each member of the working group of the date, place,

and agenda of the group's next meeting;

(e) inform fully and in due time each member of the working group of the decisions taken at

the group’s meetings and of the measures adopted.

(18) Information provided as stipulated in paragraph 12 may be used exclusively for

supervisory purposes, for audit, and for the supervision of auditors. The authorities and

persons referred to in paragraph 12 shall ensure that such information is kept confidential in

accordance with the confidentiality requirements of this Act and separate regulations18

. Such

information may be mutually exchanged by the authorities or persons mentioned in

paragraph 12 only with the consent of Národná banka Slovenska.

(19) Národná banka Slovenska shall publish methodological guidelines and

recommendations relating to supervision in the Official Journal of Národná banka Slovenska.

[Vestník Národnej banky Slovenska].

(20) Národná banka Slovenska shall publish the following information on its website:

(a) generally binding legal regulations, methodological guidelines, and recommendations

relating to financial market supervision;

(b) the method of exercising national discretions in relation to the transposition of the

European Union’s binding legislative acts and the selection possibilities that arise for

banks under this Act;

(c) the general evaluation criteria and methodology used by Národná banka Slovenska in

exercising supervision over banks and branches of foreign banks;

(d) aggregate statistical data on the key indicators relating to regulatory changes concerning

the banking sector;

(e) the list of recognised credit rating agencies;20

20

) Article 135(2) of Regulation (EU) No 575/2013.

Article 18(3) of Regulation (EU) No 1060/2009 of the European Parliament and of the Council of 16

September 2009 on credit rating agencies (OJ L 302, 17.11.2009), as amended.

12

(f) the list of higher territorial units or municipalities which, for the purpose of calculating

risk-weighted exposures using the standardised approach for credit risk, have been

assigned the same risk weights as countries.

(21) On the basis of the findings emerging from an examination carried out pursuant

to paragraph 2, Národná banka Slovenska may increase the number and frequency of on-site

inspections, request additional reports, more frequent reviews for strategic and business plans,

or conduct thematic inspections.

(22) Národná banka Slovenska shall prepare a plan of on-site inspections and a plan

of off-site supervision on an annual basis. These plans shall contain information on:

(a) the performance of inspections and supervisory tasks;

(b) entities that are subject to supervision pursuant to paragraph 1;

(c) the plan of inspections/supervision under Articles 47(9) and 48(9);

(23) In preparing the plans of inspections/supervision referred to in paragraph 22,

Národná banka Slovenska shall take into account in particular:

(a) the stress-test results of banks;

(b) the information and findings obtained from the competent supervisory authority of the

Member State in which the supervised entity operates;

(c) the degree of systemic risk;

(d) the banks that are to be taken into account according to Národná banka Slovenska.

(24) The conditions set out in Articles 30 to 32, under which a bank may be granted

prior approval under Articles 30 to 32, are to be observed by the bank throughout the validity

of the prior approval. Národná banka Slovenska shall, at least every three years, evaluate the

fulfilment of the conditions under which a bank has been granted prior approval under

Articles 30 to 32, with regard to the new types of transactions.

(25) Where a bank fails to meet the conditions set out in Articles 30 to 32 under

which it has been granted prior approval, Národná banka Slovenska may withdraw the prior

approval or impose appropriate measures to improve the internal approach pursuant to

Articles 30 to 32. Apart from the measures mentioned in Article 50, these measures may also

include a measure consisting in the submission of a recovery plan in accordance with the

conditions under which the prior approval has been granted, with specific deadlines for

submission and implementation. If the bank is unable to submit and implement a recovery

plan, the prior approval granted under Articles 30 to 32 shall be withdrawn by Národná banka

Slovenska or restricted to the part that is in line with the conditions stipulated for internal

approach under Articles 30 to 32. Where the inconsistency with the conditions under which

the prior approval has been granted under Articles 30 to 32 may lead to an inadequacy of own

funds, Národná banka Slovenska shall be entitled to request the bank to provide proof of

compliance with the own funds requirements under a separate regulation.20a

(26) Národná banka Slovenska shall supply the European supervisory authority

(European Banking Authority) with information on:

(a) the findings of examinations and evaluations pursuant to paragraph 2;

(b) the decision-making methodology under paragraphs 2, 22 to 25, and Article 50.

20a

) Articles 92 to 386 of Regulation (EU) No 575/2013.

13

(27) Národná banka Slovenska shall carry out stress tests at least once a year. The

stress-test results20b

may be published or provided to the European supervisory authority

(European Banking Authority) for the purpose of publication, along with other stress-test

results from the European Union.

(28) If the competent supervisory authority of a Member State provides Národná

banka Slovenska with information and findings concerning a bank branch or a bank carrying

on banking activities in the territory of that Member State, on the basis of which corrective

measures are to be employed, Národná banka Slovenska shall inform the competent

supervisory authority of the Member State concerned about the corrective measures it has

taken, including an explanation if requested. If the competent supervisory authority of the

Member State disagrees with the steps taken by Národná banka Slovenska and imposes other

corrective measures with which Národná banka Slovenska disagrees, the matter may be

forwarded to the European supervisory authority (European Banking Authority) for

consideration under a separate regulation19

.

(29) If Národná banka Slovenska provides another Member State's competent

supervisory authority with information and findings on a foreign bank branch under Article

11(1) or a foreign bank under Article 11(2) carrying on banking activities in the territory of

the Slovak Republic, on the basis of which corrective measures are to be employed but the

Member State concerned fails to introduce appropriate measures, Národná banka Slovenska

may, after informing the competent supervisory authority and the European supervisory

authority (European Banking Authority), take appropriate measures for the prevention of

further infringements with the aim of protecting the interests of depositors, investors, and

other entities to which services are provided, or with the aim of protecting the stability of the

financial system.

(30) Apart from assessing the credit risk, market risk, and operational risk faced by

banks, Národná banka Slovenska shall, within the scope of supervision, also examine and

evaluate:

(a) the results of stress tests carried out by banks using the internal ratings-based approach

under a separate regulation;20c

(b) the concentration risk exposures of banks, including their management and compliance

with a separate regulation;20d

(c) the risk management procedures used in connection with credit risk mitigation, including

their suitability and method of application;

(d) the own funds of banks in terms of their adequacy in relation to assets that are subject to

securitisation with regard to its economic essence and the degree of risk transfer;

(e) the liquidity risk exposures of banks, the measurement and management of this risk,

including an analysis of alternative scenarios, management of risk mitigating factors;

(f) the effects of risk spreading and the method used to incorporate these effects into the risk

measurement system, the results of stress tests carried out by banks using their own

market risk calculation models under a separate regulation;20e

(g) the geographic distribution of exposures;

(h) the business models of banks;

(i) the systemic risk involved.

20b

) Article 32 of Regulation (EU) No 1093/2010. 20c

) Article 177 of Regulation (EU) No 575/2013. 20d

) Articles 387 to 403 of Regulation (EU) No 575/2013. 20e


14

(31) For the purposes specified in paragraph 30(e), Národná banka Slovenska shall,

within the scope of supervision, also examine and evaluate:

(a) the liquidity risk management strategy of the bank under supervision, including the

bank’s financial market position;

(b) whether the bank has provided hidden support for securitisation; if the bank is found to

have provided such support more than once, Národná banka Slovenska shall take

measures to eliminate the risk that the bank will provide hidden support for securitisation

in the future;

(c) whether adjustments to the valuation of positions or portfolios in the trading book under

a separate regulation20f

enable the bank to sell or secure its position under market

conditions in a short time, without any significant loss;

(d) interest rate risk exposures arising from non-business activities; if a bank’s economic

value falls by more than 20% of the value of own funds as a result of an unexpected

change in interest rates by more than 200 basis points or by a value determined by the

European supervisory authority (European Banking Authority), Národná banka Slovenska

shall impose a corrective measure;

(e) exposures to the excessive use of leverage by the bank;

(f) the bank’s management and control system, the eligibility of statutory body members and

supervisory board members to perform their tasks and duties.

Article 6a

(1) Banks using the internal ratings-based approach for credit risk under Article 30, or

their own market risk calculation models under Article 31, shall submit to Národná banka

Slovenska annual reports on the results of calculations made within the scope of their internal

approaches for exposures or positions that are part of the reference portfolios in accordance

with a separate regulation.

(2) On the basis of the reports of banks on the results of calculations made within the

scope of their internal approaches under Articles 30 and 31 for their exposures or positions

that are part of the reference portfolios, Národná banka Slovenska shall monitor the range of

risk-weighted exposure amounts or the own funds requirements, except for the operational

risk, for reference portfolio exposures or transactions arising from the internal approaches of

banks. Národná banka Slovenska shall assess the quality of these internal approaches at least

once a year, paying particular attention to

(a) approaches that show significant differences in own funds requirements for the same

exposure;

(b) approaches that show disproportionately large or disproportionately small differences, as

well as considerably and systematically underestimated own funds requirements.

(3) If a bank uses substantially different internal approaches than the majority of

comparable banks or if its internal approaches have few common characteristics with the

approaches of comparable banks, which may lead to great differences in the results, Národná

banka Slovenska shall examine the causes of this fact. Where a bank’s internal approaches

lead to an underestimation of the own funds requirements, which are not associated with the

differences in related risks in exposures or positions, Národná banka Slovenska shall impose

a measure on the bank in accordance with Article 50.

(4) The measures imposed under paragraph 3 may not

20f

) Article 105 of Regulation (EU) No 575/2013.

15

(a) lead to standardisation, nor to the preferential use of certain methods by banks within

their internal approaches pursuant to paragraphs 2 and 3;

(b) provide banks with incorrect stimuli;

(c) cause herd behaviour among banks.

PART THREE

BANKING AUTHORISATION

Article 7

(1) The granting of banking authorisations falls within the competence of Národná

banka Slovenska. A decision to grant a banking authorisation under a separate regulation21

or

an authorisation to conduct mortgage transactions shall be made by Národná banka Slovenska

after consultation with the Ministry of Finance of the Slovak Republic (hereinafter referred to

as ‘the Ministry’). An application for a banking authorisation shall be submitted to Národná

banka Slovenska.

(2) The banking authorisation mentioned in paragraph 1 shall not be granted unless

the following conditions are proved to have been met:

(a) a share capital of at least EUR 16,600,000 is paid up for a bank or a share capital of at

least EUR 33,200,000 for a bank conducting mortgage transactions;

(b) the share capital and other financial resources of the bank have a transparent and legal

provenance;21a

(c) prospective shareholders with a qualifying holding in the bank are eligible and

acceptable, and their relationships with other persons are transparent, especially as

regards interests in the share capital and in the voting rights;

(d) the members of the bank’s statutory body are nominated in accordance with Article

24(1);

(e) persons nominated to positions that include members of the statutory body, the authorised

representative, members of the supervisory board, senior employees, and the head of

internal control and internal audit are fit and proper persons;

(f) the draft articles of association of the bank are available;

(g) a business plan based on the strategy proposed for the bank’s activities, supported by real

economic calculations, is available;

(h) a group with close links that includes a shareholder with a qualifying holding in the bank

is transparent;

(i) the exercise of supervision is not impeded by the close links of the group mentioned in

subparagraph (h);

(j) the exercise of supervision is not impeded by the legal system or the application of laws

in a country in the territory of which the group mentioned in subparagraph (h) has close

links;

(k) the bank’s registered office, headquarters, and place of business will be in the territory of

the Slovak Republic; the bank may also conduct banking activities outside the territory of

the Slovak Republic through its branches or directly, without establishing a branch, under

the conditions laid down in this Act,

(l) the shareholders establishing the bank can prove their financial capacity to overcome an

adverse financial situation faced by the bank;

21

) Article 2 of Act No 310/1992 Coll. on home savings, as amended. 21a

) Act No 297/2008 Coll. on the prevention of money laundering and terrorist financing (and amending to

certain laws).

16

(m) the conditions equivalent to those for the issuance of an authorisation for investment

services22a

are met, as appropriate, in relation to the requested scope of investment

services, investment activities, and ancillary services,

(n) the conditions equivalent to those for the issuance of an authorisation to provide payment

services22b

are met, as appropriate, in relation to of the requested scope of payment

services;

(o) the conditions equivalent to those for the issuance of an authorisation to issue electronic

money22c

are met, as appropriate, in relation to of the requested issue of electronic

money;

(p) appropriate technical systems and procedures, and adequate resources, material and

technical conditions are available for the proper conduct of banking activities;

(q) adequate organisational conditions, qualified personnel, and a functional management

and control system, including internal control and internal audit, a risk management

system, and prudential rules and regulations are available for the conduct of banking

activities;

(r) the applicant has not been convicted of any criminal offence; this fact is to be proved and

documented with a proof of a clean criminal record, no older than three months.

(3) Národná banka Slovenska shall reject an application submitted under paragraph 1

where the applicant fails to meet any of the conditions listed in paragraph 2. An application

made under paragraph 1 may not be rejected because of the economic needs of the financial

market.

(4) Before commencing banking activities in accordance with their authorisation,

banks shall prove to Národná banka Slovenska that:

(a) their share capital has been paid up in full amount;

(b) they are technically and organisationally prepared, adequately staffed, and equipped with

a management and control system, including internal control and internal audit, and a risk

management system;

(c) they meet the requirements laid down in Article 27(13).

(5) Banks may commence banking activities in accordance with their authorisation

upon receipt of a written notification from Národná banka Slovenska recognising that the

conditions set out paragraph 4 have been met.

(6) Banks shall observe the conditions specified in paragraphs 2 and 4 throughout the

validity of their banking authorisation.

(7) An applicant whose shareholder with a qualifying holding is a foreign bank shall

submit, along with the application for a banking authorisation, a binding written statement

from the supervisory authority of the country in which the foreign bank has its registered

office concerning the establishment of a bank in the territory of the Slovak Republic, as well

as a binding written commitment by the supervisory authority that it will inform in writing

Národná banka Slovenska in due time of any changes occurring in the maintenance of own

funds in respect of the relevant requirements, liquidity, and other facts that may adversely

affect the ability of the foreign bank to meet its obligations.

(8) Národná banka Slovenska shall discuss an application for a banking authorisation

with the competent supervisory authorities of the Member State concerned under

22a

) Articles 54 to 55 of Act No 566/2001 Coll., as amended. 22b

) Article 64(2)(j) of Act No 492/2009 Coll. 22c

) Article 82(2)(j) of Act No 492/2009 Coll.

17

Article 7a(1), where a banking authorisation is to be granted under paragraph 1 to an

applicant:

(a) which will be a subsidiary of a foreign bank whose registered office is located in

that Member State;

(b) which will be a subsidiary of the foreign bank’s parent company established in

that Member State;

(c) which will be controlled by the same persons that control the foreign bank established in

that Member State;

(d) which will be a subsidiary of an insurance company or securities dealer established in

that Member State;

(e) which will be a subsidiary of the insurance company’s or securities dealer’s parent

company established in that Member State;

(f) which is controlled by the same persons that control the insurance company or securities

dealer established in that Member State.

(9) Národná banka Slovenska shall, by way of a decree23

promulgated in the

Collection of Laws of the Slovak Republic (hereinafter referred to as ‘Collection of Laws’),

stipulate:

(a) the elements of an application for a banking authorisation pursuant to paragraph 1,

including the elements of an application of a bank that is to perform its activities under

a separate regulation21

and a bank that seeks to provide mortgage transactions, and

documents to be attached to the application;

(b) the details of conditions specified in paragraph 2 and how compliance is to be proved;

(c) how compliance with the requirements set out in paragraph 4 is to be proved.

(10) For the purposes of this Act, ‘eligible person’ means a person that demonstrably

meets the conditions laid down in paragraph 2(b) and is able, as the circumstances appear to

suggest, to ensure the proper and safe conduct of banking activities with a view to

maintaining stability in the banking sector.

(11) For the purposes of this Act, ‘qualifying holding’ means qualifying holding as

defined in a separate regulation.23a

(12) For the purposes of this Act, ‘indirect holding’ means a holding which is held

through an intermediary, the same being either one or more legal persons over which the

person concerned exercises control.

(13) For the purposes of this Act, ‘group with close links’ means group with close

links as defined in a separate regulation.23b

(14) Only a person with proper professional qualification may be appointed as, and

perform the duties of, a member of a bank’s statutory body, a member of a bank’s supervisory

board, the head or deputy head of a foreign bank branch, an authorised representative, a senior

employee, or as the head of internal control and internal audit in a bank or a foreign bank

branch. For the purposes of this Act, ‘professional qualification’ of a natural person

nominated as a member of a bank’s statutory body, an authorised representative, the head or

deputy head of a foreign bank branch, a senior employee, or as the head of the internal control

and internal audit unit means completed university education, at least three years of

23

) Article 1(1) of Act No 1/1993 Coll. on the Collection of Laws of the Slovak Republic, as amended. 23a

) Article 4(1) point 36 of Regulation (EU) No 575/2013. 23b


18

experience in banking or another field of finance, and three years of management experience

in banking or another field of finance. A person with completed secondary education,

completed technical/business college education or other similar education acquired abroad,

and with at least seven years of experience in banking or another field of finance, of which at

least three years were spent in a managerial position, may also be recognised by Národná

banka Slovenska as a professionally qualified person. For persons nominated to a bank’s

supervisory board, ‘professional qualification’ means extensive knowledge and experience in

banking or another field of finance. In a decree promulgated in the Collection of Laws,

Národná banka Slovenska shall give a precise definition of what is meant by professional

qualification for performing the duties of a bank’s supervisory board member, statutory body

member, the head of a foreign bank branch, the deputy head of a foreign bank branch, and

authorised representative, a senior employee or the head of internal control and internal audit

in a bank or a foreign bank branch, and shall specify how such professional qualification is to

be proved.

(15) For the purposes of this Act, the trustworthy person means a natural person who:

(a) has not been lawfully sentenced for a criminal offence against the right of property, for a

criminal offence committed in relation to a managerial function performance or for a

wilful criminal offence; these facts are proved and documented by means of an extract

from the Criminal Records Register24

presented not more than three months after it was

issued; in the case of a foreigner, these facts are proved and documented by a similar

certificate issued by the competent authority in the State of the foreigner’s usual

residence;

(b) did not work in the last ten years in a position listed in paragraph 2(e) in a bank, in a

foreign bank or in another financial institution13m

, nor the position of chief executive of a

foreign bank branch or of a senior employee in a foreign bank branch whose banking

authorisation or other authorisation to operate has been withdrawn at any time in the

period of one year before the withdrawal of such authorisation;

(c) did not work in the last ten years in a position listed in paragraph 2(e) in a bank, in a


, which was placed under compulsory

receivership or on which a foreign reorganisation measure was imposed at any time in the

period of one year before it was placed under compulsory receivership or a foreign

reorganisation measure was imposed on it under Article 53(9);

(d) did not work in the last ten years in a position listed in paragraph 2(e) in a bank, in a


, which went into liquidation or became

insolvent24aa

, in relation to which a bankruptcy was adjudicated, restructuring permitted,

forced settlement confirmed or composition approved, in relation to which a petition for

bankruptcy was dismissed or bankruptcy proceedings suspended or cancelled on the

grounds of lack of property, at any time during the period of one year before the

occurrence of any of these events;

(e) has not been, in the last ten years, fined lawfully more than 50% of the amount which he

could have been imposed under Article 50(2);

(f) has not been considered an untrustworthy person in accordance with separate

regulations24a

in the area of financial market;

24

) Article 13(1) to (6) and Article 14(3)(f) of Act No 330/2007 Coll. on the Criminal Register (and amending

certain laws). 24aa

) Article 3 of Act No 7/2005 Coll. on bankruptcy and restructuring (and amending certain laws), as amended

by Act No 520/2005 Coll. 24a)

For example, Article 8(b) of Act No 566/2001 Coll., as amended; Article 4(11) of Act No 429/2002 Coll.,

as amended by Act No 747/2004 Coll.; Article 48(11) of Act No 43/2004 Coll. on the old-age pension

saving scheme (and amending certain laws), as amended by Act No 747/2004 Coll.; Article 23(11) of Act

19

(g) has, in the last ten years, carried out his functions or pursued business activities reliably,

honestly and without the breach of generally binding legal regulations, and having regard

to these facts offers a guarantee that he will hold the proposed office reliably and

honestly, without the breach of generally binding legal regulations, including the

fulfilment of the obligations arising from the generally binding legal regulations, from the

bank’s or foreign bank’s articles of association and/or from their internal regulations and

management acts.

(16) Národná banka Slovenska may recognise the person referred to in paragraph

15(b) to (d) and (f) as trustworthy if the nature of the matter implies that such person, given

the duration of their term of office under paragraph 2(e) in a financial market entity,89

could

not cause, through its activities, any of the consequences referred to in paragraph 15(b) to (d);

the person referred to in paragraph 15(g) may likewise be recognised as trustworthy if such

person, with regard to the nature of the matter and given the duration of their term of office

when the infringement mentioned in paragraph 15(g) was detected, guarantees that he will

exercise his office, including duties specified in paragraph 15(g), in a reliable and honest

manner without breaching generally binding legal regulations In assessing the trustworthiness

of the natural person, Národná banka Slovenska shall also take into account the reasons why

the relevant bank, foreign bank, investment firm, foreign investment firm or financial

institution went into liquidation and the reasons why its banking authorisation or other

authorisation to operate was withdrawn.

(17) For the purposes of this Act, ‘subsidiary’ Act means subsidiary as defined in

a separate regulation.24aaa

(18) For the purposes of this Act, ‘parent company’ means parent company as defined

in a separate regulation.24aab

(19) For the purposes of this Act, ‘control’ means control as defined in a separate

regulation.24aac

(20) For the purposes of this Act, ‘senior employee’ means a person directly reporting

to the statutory body of a bank or to the head or deputy head of a foreign bank branch, who

manages the activities or part thereof of a bank or a foreign bank branch.

(21) For the purposes of this Act, ‘significant influence’ means a possibility to

exercise influence over the management of a legal person, comparable with the influence

No 650/2004 Coll. on the supplementary pension scheme (and amending certain laws); Article 3(a) of

Act No 8/2008 Coll. as amended; Article 23(1) of Act No 186/2009 Coll., as amended; Article 2(31) of Act

No 492/2009 Coll., as amended by Act No 394/2011 Coll.; Article 28(10) of Act No 203/2011 Coll. on

collective investment. 24aaa


Article 22(4) of Act No 431/2002 Coll., as amended by Act No 561/2004 Coll. 24aab


Article 22(3) of Act No 431/2002 Coll., as amended. 24aac


Article 22(3) and (4) of Act No 431/2002 Coll., as amended.

20

attached to a holding of 10% or more of the share capital or of the voting rights of that legal

person.

Article 7a

(1) Národná banka Slovenska shall discuss an application for a banking authorisation

with the competent authorities, namely:

(a) the supervisory authority of the Member State in which the foreign bank concerned is

established, when a banking authorisation is to be granted under Article 7(8)(a) to (c);

(b) the supervisory authority that is responsible for the supervision of insurance companies or

securities dealers in the Member State in which the foreign insurance company or

securities dealer concerned is established, when a banking authorisation is to be granted

under Article 7(8)(d) to (f).

(2) Národná banka Slovenska shall discuss, with the competent supervisory authority

of the Member State referred to in paragraph 1, the eligibility and acceptability of persons that

are shareholders with a qualifying holding in a foreign bank, and the professional

qualification and credibility of natural persons who are members of the statutory bodies of

persons referred to in paragraph 1(b).

(3) If, after being granted a banking authorisation, a bank is to become part of

a consolidated group as defined in Articles 44 to 49, including a financial holding company,

or part of a financial conglomerate as defined in Articles 49a to 49o, including a mixed

financial holding company, the granting of a banking authorisation shall also be conditional

upon the presentation of proof of the professional qualification and credibility of natural

persons who are members of the statutory body of the aforementioned financial holding

company or mixed financial holding company.

(4) ‘Professional qualification’ as mentioned in paragraph 3 means a person’s

extensive knowledge of the financial sector and experience in the field of finance. The

credibility of persons as defined in paragraph 3 shall also be verified pursuant to

Article 7(15).

Article 8

(1) A decision to grant an authorisation to a foreign bank to conduct banking activities

through its branch located in the territory of the Slovak Republic shall be made by Národná

banka Slovenska. A foreign bank shall submit an application for a banking authorisation to

Národná banka Slovenska.

(2) A banking authorisation shall not be issued under paragraph 1 unless the following

conditions are proved to have been met:

(a) the foreign bank concerned provides funding to its branch in a sufficient amount and of

transparent origin in relation to the scope and risk exposure of the branch’s business

operations;

(b) the foreign bank is trustworthy and has adequate financial strength in relation to the scope

of business operations of its branch;

(c) the persons nominated by the foreign bank for the posts of head and deputy head of its

branch, and head of the internal control and internal audit unit are fit and proper persons;

(d) the foreign bank’s business plan based on the strategy proposed for the activities of its

branch is supported by realistic economic calculations;

21

(e) the group with close links to which the foreign bank belongs is transparent;

(f) the close links within the group mentioned in subparagraph (e) do not obstruct

supervision;

(g) the legal system and its application in the home country of the group mentioned in

subparagraph (e) do not obstruct supervision;

(h) the foreign bank seeking to operate in the territory of the Slovak Republic through its

branch has its registered office, headquarters, and conducts a principal part of its

activities in the same country;

(i) the conditions equivalent to those for the issuance of an authorisation for investment

services22a

are met, as appropriate, in relation to the requested scope of investment

services, investment activities, and ancillary services;

(j) the conditions equivalent to those for the issuance of an authorisation to provide payment

services22b

are met, as appropriate, in relation to the requested scope of payment services;

(k) the conditions equivalent to those for the issuance of an authorisation to issue electronic

money22c

are met, as appropriate, in relation to the requested issue of electronic money;

(l) appropriate technical systems and procedures are in place for the proper performance of

banking activities, and there are adequate resources, material and technical conditions for

these activities;

(m) there are adequate personnel and organisational conditions for the conduct of banking

activities, a fully functional management and control system, including internal control

and internal audit, a risk management system, and prudential rules and regulations.

(3) Národná banka Slovenska shall reject an application pursuant to paragraph 1

where the applicant fails to meet any of the conditions specified in paragraph 2. The reason

for rejecting an application as referred to in paragraph 1 may not be the economic needs of the

market.

(4) Before commencing the activities stated in its banking authorisation, a foreign

bank branch shall demonstrate to Národná banka Slovenska compliance with the following

conditions:

(a) technical, organisational, and personnel preparedness to conduct banking activities under

its authorisation, the existence of a management and control system at the branch,

including an internal control and internal audit unit, and a system of risk management;

(b) compliance with the requirements laid down in Article 27(13).

(5) A foreign bank branch may commence the activities stated in its banking

authorisation on the basis of a written notification from Národná banka Slovenska

acknowledging that the conditions set out in paragraph 4 have been met.

(6) A foreign bank branch shall observe the conditions stipulated in paragraphs 2, 4,

and 9 throughout the validity of its banking authorisation.

(7) A foreign bank shall submit, together with an application for a banking

authorisation, a binding written statement from the supervisory authority of the country in

which the foreign bank has its registered office concerning the establishment of a branch in

the territory of the Slovak Republic, as well as a written promise from that supervisory

authority that it will inform in writing Národná banka Slovenska in due time of any changes

in the maintenance of own resources in respect to the requirements and liquidity and of other

facts that may adversely affect the ability of the foreign bank to meet its obligations.

22

(8) In labelling its registered office and in written communication, a foreign bank

branch shall always include in its name the words ‘branch of a foreign bank.’

(9) A banking authorisation as referred to in paragraph 1 may permit mortgage

transactions only if the foreign bank applying for a banking authorisation under paragraph 1 is

authorised to conduct mortgage transactions in its home country and if the law of that country

guarantees equal rights for mortgage or municipal loan borrowers and for holders of mortgage

bonds or municipal bonds issued in the Slovak Republic in respect of mortgage transactions

conducted under this Act or under separate regulations,24ab

including equal ranking in

bankruptcy proceedings,24ac

as for mortgage or municipal loan borrowers and mortgage or

municipal bond holders in the country where its registered office is located, at least in the

scope of rights given to mortgage or municipal loan borrowers and mortgage or municipal

bond holders by the law of the Slovak Republic.

(10) In a decree23

to be promulgated in the Collection of Laws, Národná banka

Slovenska shall stipulate:

(a) the elements of an application for a banking authorisation pursuant to paragraph 1,

including the elements of an application pursuant to paragraph 1 for a branch that is to

conduct mortgage transactions, and documents to be attached to the application;

(b) details of the conditions specified in paragraph 2 and details of how compliance with

these conditions is to be demonstrated;

(c) details of how compliance with the requirements set out in paragraph 4 is to be

demonstrated.

(11) For the purposes of this Act, ‘qualifying holding’ means qualifying holding as

defined in a separate regulation23a

.

Article 9

(1) A banking authorisation shall be issued for an indefinite period and may not be

transferred to another person, nor assigned to the holder’s legal successor.

(2) A banking authorisation contains a precise definition of the banking activities

permitted thereunder and may also state the conditions which a bank or a foreign bank branch

must meet prior to commencing its authorised activities or which they must observe when

conducting any authorised banking activity.

(3) A banking authorisation may restrict the scope or manner of performance of

certain banking activities. At the request of a bank or a foreign bank branch, a banking

authorisation may be extended by a decision to include other banking activities; the same

applies to any extension of the restricted scope or manner of performance of banking

activities.

(4) Banks shall inform in writing Národná banka Slovenska in advance of any change

in the circumstances on the basis of which their banking authorisation was issued pursuant to

Article 7; the prior approval of Národná banka Slovenska is to be required for electing or

appointing a new member to the bank’s statutory body or supervisory board, for appointing an

24ab

) For example, Articles 14 to 17 and 20 of Act No 530/1990 Coll., as amended; Article 73j(2) of Act

No 566/2001 Coll., as amended by Act No 209/2007 Coll. 24ac

) For example, Articles 176 to 195 of Act No 7/2005 Coll., as amended. 23a


23

authorised representative, for replacing a senior employee or the head of the bank’s internal

control and internal audit unit, as well as for changing the bank’s registered office; otherwise

such election, appointment or change will be invalid. Banks shall, as soon as is reasonably

practicable after the occurrence of such event, inform Národná banka Slovenska in writing of

the date when the office of a statutory body member or of a supervisory board member begins

or ends. A precondition24b

for an amendment to a bank’s articles of association or for new

articles of association (hereinafter referred to as ‘amended articles’) to enter into force and

effect will be approval by Národná banka Slovenska. No later than on the third working day

after the bank decides to amend its articles of association, the bank shall deliver to Národná

banka Slovenska a written application for the approval of Národná banka Slovenska for the

amended articles, with the draft amendment attached, together with the full text of the articles

of association before and after amendment. If a bank’s articles of association are amended

without the approval of Národná banka Slovenska, such amendment will be invalid. If,

however, Národná banka Slovenska fails to settle an application within thirty days of the date

of delivery of a complete application, the approval for the relevant amendment to the articles

of association will be considered granted.

(5) Foreign banks and branches of foreign banks shall inform in writing Národná

banka Slovenska in advance of any change in the circumstances on the basis of which their

banking authorisation was issued pursuant to paragraph 8. The prior approval of Národná

banka Slovenska is to be required for appointing a person as chief executive officer of

a foreign bank branch, as a senior employee, as head of the internal control and internal audit

unit, and for changing the registered office of a foreign bank branch, otherwise such

appointment or change will be invalid.

(6) Banks and branches of foreign banks shall submit a proposal to the competent

court for the entry of their authorised activities into the Commercial Register on the basis of

their banking authorisation within ten days of the date when the authorisation became legally

effective, and shall deposit with Národná banka Slovenska an extract from the Commercial

Register within ten days of a legally effective decision of the court to make an entry into the

Commercial Register or to change an entry in the Commercial Register.

Article 10

A banking authorisation may not be issued where such authorisation would contradict

an international agreement that is binding upon the Slovak Republic.

Article 11

(1) A foreign bank established in a Member State may carry on, through its branch,

banking activities in the territory of the Slovak Republic under Article 2(2), except for the

activities mentioned in Article 2(2)(m) and (n), without a banking authorisation, if an

authorisation to perform such activities has been granted to this foreign bank in its home

Member State, on the basis of a written statement delivered by the competent supervisory

authority of that Member State to Národná banka Slovenska.

(2) A foreign bank under paragraph 1 shall also be authorised to conduct banking

activities pursuant to Article 2(2), except for the activities mentioned in Article 2(2)(m) and

(n), even without establishing a branch, on the basis of a written notification of intended

24b

) Article 36(1) and (2) of the Civil Code.

24

banking activities delivered by the competent supervisory authority of the Member State

concerned to Národná banka Slovenska before the first banking transaction is carried out.

(3) The activities mentioned in Article 2(2), except for deposit-taking, may also be

conducted in the territory of the Slovak Republic under paragraphs 1 and 2 by a foreign

financial institution which is established in a Member State and which is a subsidiary of

a bank or a foreign bank pursuant to paragraph 1; such foreign financial institution may

perform such activities, provided its Articles of Association or Memorandum of Association

allow them to be performed, under the following conditions:

(a) the foreign bank or foreign banks are authorised to conduct banking activities in the

territory of the Member State whose law governs the foreign financial institution

concerned;

(b) the foreign financial institution actually performs banking activities in the territory of the

same Member State;

(c) the foreign bank or foreign banks hold at least 90% of the voting rights of the foreign

financial institution concerned;

(d) the foreign bank or foreign banks ensure the sound and prudent management of the

foreign financial institution and irrevocably assume joint and several liability for the

obligations taken on by the foreign financial institution; the competent supervisory

authority of the Member State concerned must approve the method of liability, and

(e) the foreign financial institution is subject to consolidated supervision of a consolidated

group of the foreign bank or foreign banks.

(4) A foreign financial institution shall document the facts mentioned in paragraph 3

to Národná banka Slovenska by a written attestation of the competent supervisory authority of

the Member State concerned. The provisions of Articles 16 to 18 and 20 shall apply as

appropriate to such foreign financial institution.

(5) A foreign bank that does not enjoy the benefits of a single banking authorisation

according to the European Union’s law, or a foreign bank established in a country that does

not enjoy the benefits of a single banking authorisation according to the European Union’s

law, may not provide its services in the territory of the Slovak Republic through its branch

without a banking authorisation.

(6) A foreign bank referred to in paragraph 1 may conduct banking activities as listed

in Article 2(2)(m) and (n) only on the basis of a banking authorisation pursuant to Article

8(1).

(7) The provisions of Article 2(10), Article 3, Article 4(1), Article 6(8), first sentence,

and (9), Article 7(8), Article 9(5), Article 22, and Article 28(1)(d), and Article 64 shall not

apply to a foreign bank pursuant to paragraph 1 where the branch of a foreign bank or its part

is sold, and pursuant to Article 64. Nor shall apply the provisions of Article 8, except in cases

specified in paragraph 6.

Article 12

(1) Národná banka Slovenska shall, within two months of the date of receipt of

a statement from the competent supervisory authority of the Member State concerned

confirming that there are no reasons to doubt the organisational structure and financial

situation of the foreign bank mentioned in Article 11(1), prepare to exercise supervision over

the branch of this foreign bank, and, if necessary, shall advise it within this time limit of the

25

conditions according to which the scheduled activities may or must be performed in the public

interest within the territory of the Slovak Republic, and shall likewise advise it of the

provisions of the generally binding regulations of the Slovak Republic that will apply to its

activities.

(2) Following the delivery of the statement under paragraph 1 or after a two-month

period lapses without a response, the foreign bank and branch of a foreign bank mentioned in

Article 11(1) may commence its banking activities in the territory of the Slovak Republic.

Article 13

(1) A bank seeking to establish a branch in the territory of a Member State shall apply

in writing to Národná banka Slovenska for permission to set up a branch in the territory of the

Member State concerned. In the application, the bank shall specify:

(a) the Member State in which it seeks to set up a branch;

(b) the registered office of the branch in the Member State concerned;

(c) the first and last names of the persons responsible for managing the branch;

(d) a business plan indicating in particular the contemplated activities and proposed strategy

for the operations of the branch based on realistic financial calculations, and

(e) the organisational structure of the branch.

(2) Národná banka Slovenska shall, if it has no reason to doubt the bank’s

organisational structure and financial situation in relation to the authorised banking activities,

notify the competent supervisory authority of the Member State and the bank concerned of its

decision to grant such permission within three months of the receipt of an application in due

form pursuant to paragraph 1; at the same time, NBS shall notify the competent authority of

the other Member State of the amount and composition of the bank’s own funds, the amount

and procedure for calculating the amount of the corresponding requirement for the bank’s

own funds, and details of the deposit protection system used in the Slovak Republic.

(3) If there are any doubts as to the facts mentioned in paragraph 2, Národná banka

Slovenska shall, within three months of the delivery of an application in due form pursuant to

paragraph 1, notify the competent supervisory authority of the relevant Member State of its

decision to refuse to grant permission.

(4) A bank shall notify in writing Národná banka Slovenska and the competent

supervisory authority of the Member State concerned of any intended changes in the facts

specified in paragraphs 1 and 2 at least thirty days before such changes take effect.

(5) Where a bank seeks to carry on, in the territory of a Member State, banking

activities pursuant to Article 2(2), with the exception of those mentioned in Article 2(2)(m)

and (n), without establishing branch, the bank in question shall notify Národná banka

Slovenska in writing of its intended banking activities prior to the first transaction. Národná

banka Slovenska shall send this notification to the competent supervisory authority of the

Member State concerned within one month.

(6) Where a bank seeks to set up or acquire a financial institution in the territory of

a Member State, it shall inform Národná banka Slovenska in writing of its intention to set up

or acquire a financial institution and, at the same time, of the institution’s activities.

26

(7) Where a financial institution established in the Slovak Republic as a subsidiary of

a bank or two or more banks, carries on activities as specified in Article 2(2), except for

deposit-taking, in a Member State and fails to comply with the conditions set out in

Article 11(3)(a) to (e), Národná banka Slovenska shall without delay report these facts to the

competent supervisory authority of the Member State concerned.

Article 14

(1) Supervision over a bank branch set up in the territory of a Member State shall be

exercised by Národná banka Slovenska. The liquidity of this branch shall be supervised by the

competent supervisory authority of the Member State concerned in cooperation with Národná

banka Slovenska, unless they agree otherwise. This branch shall also be subject to measures

adopted by the relevant Member State as part of its monetary policy; in the case of countries

that have introduced the euro as their currency, the branch shall be subject to measures

adopted by the European Central Bank.

(2) Where the competent supervisory authority of a Member State notifies Národná

banka Slovenska that a bank branch violates any legislation by its banking activities in the

territory of that Member State, Národná banka Slovenska shall take the necessary measures to

rectify the unlawful situation.

(3) Where a bank branch violates any legislation of a Member State by its banking

activities in the territory of that Member State, the branch in question shall implement or

suffer any measures imposed by the competent supervisory authority of the Member State

concerned.

Article 15

When exercising supervision under Article 14 in regard to the monitoring of risks

arising from financial market activities in the territory of a Member State, the Member State

concerned may demand from a bank branch the same information as from banks with

registered offices in its territory. The relevant Member State may request a bank that has

a branch in its territory to deliver regular reports on its banking activities in its territory for

statistical purposes. The bank shall comply with this request.

Article 16

Supervision over a foreign bank branch under Article 11(1) in the territory of the

Slovak Republic shall be exercised by the competent supervisory authority of the Member

State concerned. In terms of liquidity, such branch shall be supervised by Národná banka

Slovenska in cooperation with the competent supervisory authority of the Member State

concerned, unless they agree otherwise. Supervision over compliance with the obligations

relating to protection against money laundering and terrorist financing in such branch shall be

exercised by Národná banka Slovenska.24d

The organisational structure of a foreign bank

branch must contain the name of the employee in charge of protection against money

laundering and terrorist financing, while responsibility for the proper performance of duties

by that employee shall be borne by the head of the branch. This branch shall also be subject to

the decrees of Národná banka Slovenska adopted as part of its monetary policy; after the euro

changeover in the Slovak Republic, this branch shall be subject to the European Central

24d

) Article 29(3) of Act No 297/2008 Coll.

27

Bank’s regulations. The decrees of Národná banka Slovenska may not be discriminatory or

restrictive. Where Národná banka Slovenska considers it necessary for the sake of financial

stability in the Slovak Republic, Národná banka Slovenska may, after consultation with the

competent supervisory authority of the Member State concerned, carry out an on-site

inspection at the foreign bank branch in question and request information for supervisory

purposes. After such inspection, Národná banka Slovenska shall report the information and

findings revealed to the Member State's competent supervisory authority in order to facilitate

the supervision of the foreign bank concerned.

Article 17

(1) If Národná banka Slovenska finds that a foreign bank branch performing banking

activities under Article 11(1) or a foreign bank performing banking activities under Article

11(2) in the territory of the Slovak Republic has violated any applicable legal regulation or

there is a justified risk thereof, it shall forthwith inform the competent supervisory authority

of the Member State in which the foreign bank in question has its registered office. If Národná

banka Slovenska finds that the Member State’s competent supervisory authority has failed to

take measures to eliminate the breach of legislation or the risk thereof, Národná banka

Slovenska may request the European supervisory authority (European Banking Authority) to

remedy the situation.

(2) Upon receipt of information from the competent supervisory authority of another

Member State about the violation of legal regulations by a bank or a bank branch carrying on

banking activities in the territory of that Member State or about the existence of a justified

risk thereof, Národná banka Slovenska shall take measures to eliminate the breach of

legislation or the risk thereof on the part of the bank or bank branch in question. Národná

banka Slovenska shall report this fact to the competent supervisory authority of the Member

State concerned.

(3) If, in a matter allowing no delay, the competent supervisory authority of the

Member State concerned fails to take measures pursuant to paragraph 1 or reorganisation

measures under Article 53(9), Národná banka Slovenska may take preventive measures to

protect the clients of the foreign bank branch referred to in paragraph 1 or those of the foreign

bank mentioned in paragraph 1, including the suspension of payment operations24e

in deposits.

These preventive measures may not give any preferential treatment to the creditors of the

foreign bank branch referred to in paragraph 1 or of the foreign bank mentioned in

paragraph 1. Národná banka Slovenska shall forthwith report these measures to the European

Commission (hereinafter: ‘the Commission’), the European supervisory authority (European

Banking Authority), and to the competent supervisory authority of the Member State in which

the foreign bank has its registered office. If the Member State’s competent supervisory

authority takes preventive measures but Národná banka Slovenska has objections to these

measures, Národná banka Slovenska may request assistance from the European supervisory

authority (European Banking Authority) under a separate regulation19

.

(4) If the competent supervisory authority of the Member State concerned takes

reorganisation measures under Article 53(9), the preventive measures taken by Národná

banka Slovenska pursuant to paragraph 3 shall become ineffective and shall be therefore

cancelled by Národná banka Slovenska. If the Member State’s competent supervisory

authority fails to take reorganisation measures under Article 53(9) and the preventive

24e


28

measures taken by Národná banka Slovenska lose their justification, Národná banka

Slovenska shall cancel these measures.

Article 18

(1) Národná banka Slovenska may demand, for statistical and informational purposes,

that a foreign bank as referred to in Article 11(1), performing banking activities through its

branch or without establishing a branch in the territory of the Slovak Republic, deliver regular

reports on its operations in the territory of the Slovak Republic.

(2) For the purpose of determining whether a foreign bank branch is significant under

Article 6(14) and for supervisory purposes under Article 16, Národná banka Slovenska shall

be authorised to demand that a foreign bank branch as mentioned in Article 11(1) deliver

reports, statements, and other data in accordance with Article 42(2) and (3).

Article 19

(1) Where a bank’s authorisation is revoked, Národná banka Slovenska shall, without

delay, inform the competent supervisory authority of the Member State in which the bank

concerned has a branch.

(2) Národná banka Slovenska shall inform the Commission, the European supervisory

authority (European Banking Authority), and the European Banking Committee of the

number and nature of cases where it refused to send information about the establishment of

a branch in the territory of a Member State to the competent supervisory authority of that

Member State.

(3) Národná banka Slovenska shall notify the Commission, the European supervisory

authority (European Banking Authority), and the European Banking Committee of the

issuance or revocation of a bank’s authorisation to set up a branch outside the territory of its

home Member State, or of the issuance or revocation of an authorisation of a foreign bank

established outside the territory of its home Member State to establish a branch in the Slovak

Republic.

(4) Národná banka Slovenska shall notify the Commission, the European supervisory

authority (European Banking Authority), and the European Banking Committee that a bank is

or will become a subsidiary of a foreign bank that is subject to the law of a country that is not

a Member State of the European Union. At the same time, Národná banka Slovenska shall

provide information about the structure of the consolidated group to which the bank belongs

or will belong.

(5) Národná banka Slovenska shall notify the Commission of any difficulties that

have occurred in connection with the establishment of a bank or a bank branch in a country

that is not a Member State, or in the course of its operations.

(6) Národná banka Slovenska shall notify the Commission and the European

supervisory authority (European Banking Authority) of the terms and conditions for the

issuance of a banking authorisation under Articles 7 and 8.

29

(7) Národná banka Slovenska shall notify the European supervisory authority

(European Banking Authority) of the issuance of each banking authorisation under Articles 7

and 8, as well as of the revocation of a banking authorisation under Article 50(1)(k).

Article 20

Foreign banks with a registered office in a Member State may freely advertise their

banking services rendered in the Slovak Republic in accordance with the law of the Slovak

Republic.

PART FOUR

THE REPRESENTATIVE OFFICE OF A BANK OR A FOREIGN BANK

Article 21

(1) Banks shall notify Národná banka Slovenska in writing of their intention to

establish a representative office abroad. Such notification must contain the following data:

(a) the address of the representative office;

(b) the full name and permanent residence address of the head of this representative office.

(2) For the purposes of this Act, ‘representative office of a bank’ means an

organisational unit of a bank that promotes the bank’s operations abroad or gathers

information about the possibilities of economic cooperation abroad.

(3) A representative office of a bank may not conduct banking activities or do

business in any other way.

Article 22

(1) A foreign bank or a similar foreign financial institution engaged in banking

activities may establish a representative office in the territory of the Slovak Republic on the

basis of registration. A decision on registration shall be made by Národná banka Slovenska on

the basis of an application for registration.

(2) For the purposes of this Act, ‘representative office of a foreign bank or of a similar

foreign financial institution’ (hereinafter referred to as ‘foreign representative office’) means

an organisational unit that promotes the activities of a foreign bank or a similar foreign

financial institution or gathers information about the possibilities of economic cooperation

with the Slovak Republic. A foreign representative office shall use the designation

‘representative office’ in the business name of its registered office, as well as in

correspondence.

30

(3) A foreign representative office may not conduct banking activities or do business

in any other way. A foreign representative office shall not be entered into the Commercial

Register.

(4) A foreign bank or a similar foreign financial institution engaged in banking

activities shall notify in writing Národná banka Slovenska in advance of any change in the

location of its foreign representative office, of any replacement of the head of its foreign

representative office, or of the closure thereof. Before the head of a foreign representative

office is replaced, the financial institution concerned shall submit all documents a foreign

bank or a similar foreign financial institution is required to submit when applying for the

registration of a representative office.

(5) The head of a foreign representative office may perform, on behalf of a foreign

bank or a similar foreign financial institution, solely employment-related acts in relation to the

other employees of this foreign representative office.

(6) The elements of an application for the registration of a foreign representative

office shall be specified in a decree23

issued by Národná banka Slovenska and promulgated in

the Collection of Laws.

(7) Within 30 days of its registration, a foreign representative office shall advise

Národná banka Slovenska in writing of the bank or branch of a foreign bank where its

accounts are maintained.

(8) A foreign representative office shall, within 30 days, notify Národná banka

Slovenska in writing of any change that have occurred in the facts constituting the basis for its

registration.

(9) Národná banka Slovenska is authorised to verify compliance with the conditions

specified in registration decisions and stipulated by the laws and generally binding legal

regulations of the Slovak Republic. A foreign representative office shall cooperate with

Národná banka Slovenska during such inspections.

(10) Where a foreign representative office fails to observe the conditions specified in

the decision on its registration or violates any of the laws or generally binding regulations of

the Slovak Republic, Národná banka Slovenska may decide to cancel its registration.

(11) The registration of a foreign representative office shall expire on the day

specified in a written notice from a foreign bank or a similar foreign financial institution

engaged in banking activities about the closure of its foreign representative office, or on the

day when the foreign bank or similar foreign financial institution engaged in banking

activities is dissolved.

PART FIVE

ORGANISATION AND MANAGEMENT OF A BANK

OR A FOREIGN BANK BRANCH

Article 23

31

(1) The articles of association of a bank shall regulate, apart from the elements

specified in a separate regulation,25

the bank’s organisational structure and management

system so as to ensure the proper and secure performance of banking activities in line with the

bank’s authorisation and to prevent a conflict of interests arising within the bank. They shall

also regulate the relations and cooperation between the bank’s statutory body, supervisory

board, senior employees, and its internal control and internal audit unit. Furthermore, a bank

shall extend its articles of association under this Act to include the principles of remuneration,

which are taken into account in the bank’s risk management system and which support that

system. The articles of association shall also cover the activities of the bank’s remuneration

committee if established or the activities of the person responsible for the bank’s

remuneration system. In its articles of association, a bank shall also separate and regulate the

powers and responsibilities within the bank for:

(a) the setting, implementation, monitoring, and oversight of the bank’s business objectives;

(b) the bank’s management system in regard to compliance with the rule laid down in Article

27(1)(d);

(c) the internal control system, including a separate and independent internal control and

internal audit unit corresponding to the complexity of banking activities and the risks

involved;

(d) risk management conducted independently and separately from banking activities,

including a management system for the risks to which the bank is exposed, and for the

activities of the risk management committee;

(e) the conduct of credit transactions separately from investment transactions in accordance

with Article 34;

(f) separate monitoring of the risks to which the bank is exposed when performing banking

activities vis-à-vis persons in a special relationship with the bank;

(g) the information system;

(h) protection against money laundering and terrorist financing;

(i) the activities of the bank’s remuneration committee.

(2) In their internal regulations, banks shall lay down the details of:

(a) their organisational structure as referred to in paragraph 1, with emphasis on the

identification of the persons responsible for the performance of banking activities within

the bank;

(b) their internal control system, including an internal control and internal audit unit;

(c) the preparation and implementation of a plan for their recovery (hereinafter a ‘recovery

plan’) and of the method of its updating.

(3) Through their internal control system and in order to prevent losses or damage

resulting from deficient management, banks shall ensure the performance of:

(a) control activities as part of their operating work procedures and the implementation of

remedial measures based on the results of control activities in the individual

organisational units, while these activities and measures shall be carried out by:

1. the bank’s employees or organisational units that participate in the individual

operating work procedures;

2. the managerial employees of the bank’s different organisational units who are

responsible for the checked processes and for the results of such checks, or

employees authorised by them;

(b) oversight conducted independently of the operating work procedures by the bank’s

internal control and internal audit unit; in exceptional and predetermined cases, a check

25

) Articles 173 to 174 of the Commercial Code.

32

may be carried out as part of the bank’s operating work procedure, provided that

independence is maintained and conflicts of interest are excluded.

(4) The internal control and internal audit unit of a bank shall carry out regular

reviews of compliance with the laws and other generally binding legal regulations, as well as

with the bank’s internal regulations and procedures; it shall examine and evaluate in particular

the functionality and effectiveness of the bank’s management and control system, risk

management system, the system of own capital adequacy assessment, the maintenance of own

funds in relation to the own funds requirements and liquidity, and compliance with the asset

exposure limits; it shall also examine and evaluate the bank’s preparedness in terms of risk

management to conduct new types of transactions, the principles of remuneration that are

taken into account in the risk management system, and the information referred to in

Article 37. The internal control and internal audit unit shall be responsible for monitoring the

elimination of shortcomings and for monitoring the implementation of approved proposals

and recommendations for the rectification of shortcomings. Responsibility for the

establishment and functionality of the internal control and internal audit unit shall be borne by

the bank’s statutory body; this responsibility may not be transferred to another person. The

internal control and internal audit unit shall report directly to the bank’s statutory body or

supervisory board, or to a member of the bank’s statutory body or supervisory board.

(5) A bank shall maintain an organisational structure complying with the requirements

of this Act and other generally binding legal regulations.

(6) For the purposes of this Act, the following definitions shall apply:

(a) ‘risk’ means a possible loss or damage caused by a bank’s own activities or caused to the

bank by other circumstances; for the purposes of this Act, risks are classified according to

type as follows:

1. credit risk, meaning the risk that a borrower or other contracting party may fail to

discharge their liabilities; credit risk includes country risk, concentration risk,

settlement risk, and counterparty risk;

2. market risk, arising from the bank’s positions and caused by changes in the values of

risk factors, which are usually determined by the market; the main components of

market risk are interest rate risk, equity risk, foreign exchange risk, and commodity

risk, by means of which market risk is measured;

3. operational risk as defined in a separate regulation;25aa

4. liquidity risk, meaning the risk that a bank may be unable to meet its liabilities when

they mature;

5. systemic risk, meaning the risk of an impact on the stability of the financial system

with serious consequences for the financial system and national economy of the

Slovak Republic;

6. model risk, meaning the risk of loss being incurred by a bank as a result of decisions

based on the results of internal approaches, due to errors made during their

preparation, implementation or application;

7. the risk of excessive use of leverage under a separate regulation;25ab

(b) ‘risk management’ means the prevention of possible losses, including damage, through

timely and appropriate risk identification, risk measurement, risk monitoring, and risk

mitigation;

25aa

) Article 4(1) point 52 of Regulation (EU) No 575/2013. 25ab


33

(c) ‘risk management system’ means a system ensuring timely and appropriate risk

identification, risk measurement, risk monitoring, risk mitigation, and adequate reporting

of all significant risks; a bank’s risk management system includes its risk management

strategy and organisation, information flows, risk management information system,

transaction origination system, internal capital adequacy assessment system, and its

system for introducing new types of transactions;

(d) ‘internal capital’ means the funds that a bank, on the basis of its own risk definition and

assessment, maintains internally and allocates for risk coverage;

(e) ‘central counterparty’ means central counterparty as defined in a separate regulation;25ac

(f) ‘credit risk mitigation’ means credit risk mitigation as defined in a separate regulation;25ad

(g) ‘internal approach’ means internal approach as defined in a separate regulation.25ae

(7) After making any change in its articles of association, a bank shall forthwith

submit a copy of the latest version of the articles of association to Národná banka Slovenska.

(8) A bank may establish a branch abroad only with the prior approval of Národná

banka Slovenska, issued on the basis of a request made by the bank.

(9) In a decree23

promulgated in the Collection of Laws, Národná banka Slovenska

shall specify:

(a) the details of a bank’s organisational structure and management system in accordance

with paragraph 1;

(b) the details of a bank’s internal control system in accordance with paragraph 3, the details

of the activities and responsibilities of a bank’s internal control and internal audit unit, as

well as the scope, number and dates of audits carried out by this unit;

(c) what is meant by ‘significant risk’ for the purpose of risk management;

(d) the extent to which a foreign bank branch is subject to the requirements laid down in

subparagraphs (a) and (b);

(e) the elements of an application for prior approval in accordance with paragraph 8,

including the documents to be attached to this application;

(f) the principles of remuneration for banks as defined in Articles 23a to 23c, in particular:

1. criteria for setting the ratio between the fixed and variable components of a bank

employee’s total remuneration;

2. a method for calculating the value of variable remuneration paid in the form of

securities and other financial instruments as part of the total value of variable

remuneration;

(g) criteria for setting up a remuneration committee in a bank under Article 23d.

Article 23a

(1) Banks shall apply the remuneration principles defined in this Act in relation to:

(a) all members of the bank’s statutory body;

(b) senior employees in charge of risk management;

(c) senior employees in charge of transaction processing;

(d) employees responsible for risk management, including employees authorised to set limits

or exceed limits in managing the risks faced by the bank;

(e) all members of the bank’s supervisory board;

(f) the head of the bank’s internal control and internal audit unit;

25ac

) Article 4(1) point 34 of Regulation (EU) No 575/2013. 25ad

) Article 4(1) point 57 of Regulation (EU) No 575/2013. 25ae

) Article 143(1), Articles 221 and 225, Articles 259(3) and 312(2), and Articles 283 and 363 of Regulation

(EU) No 575/2013.

34

(g) other employees not included in subparagraphs (a) to (d) who are responsible for risk

management and whose professional activities have a material impact on the bank’s risk

profile as defined in a separate regulation25aea

.

(2) In accordance with the remuneration principles referred to in paragraph 1, banks

shall apply the following remuneration components:

(a) a guaranteed fixed remuneration component, specifically

1. a basic wage or salary for employees;

2. a fixed remuneration component for statutory body members and supervisory board

members;

(b) a variable remuneration component.

(3) There must be an appropriate balance between the guaranteed fixed remuneration

and variable remuneration of any person referred to in paragraph 1; the variable remuneration

component may not exceed the guaranteed fixed remuneration component. The guaranteed

fixed remuneration component must represent a sufficiently large proportion of the total

remuneration to enable a flexible policy to be pursued in the area of variable remuneration,

including the option to pay no variable remuneration. Guaranteed fixed remuneration is to be

determined according to the professional qualification and responsibility within the bank’s

organisation and management of the person concerned as referred to in paragraph 1.

(4) The remuneration principles defined in paragraph 1 also apply to severance

payments, retirement allowances, and other compensation payable to persons as referred to in

paragraph 1 in connection with their previous employment.

(5) The remuneration principles defined in paragraph 1 are to be consistent with the

bank’s effective risk management system, business strategy and long-term objectives, and are

to include measures for the prevention of conflicts of interest.

(6) Banks that have received stabilisation assistance from the state budget to mitigate

the impacts of the global financial crisis are also required to apply the remuneration principles

to:

(a) the variable remuneration components referred to in paragraph 1, not exceeding 1% of the

net income, where they are inconsistent with the bank’s business strategy, interests, and

with the period of stabilisation assistance;

(b) adjustments to the structure of variable remuneration components and, if needed, to the

setting of limits for the remuneration of statutory body members and supervisory board

members at the request of Národná banka Slovenska, in compliance with the principles of

risk management;

(c) the variable remuneration components payable to statutory body members and to

supervisory board members, which are approved for the period under review only if they

are justified.

Article 23b

25aea

) Commission Delegated Regulation (EU) No 604/2014 of 4 March 2014 supplementing Directive

2013/36/EU of the European Parliament and of the Council with regard to regulatory technical standards

with respect to qualitative and appropriate quantitative criteria to identify categories of staff whose

professional activities have a material impact on an institution’s risk profile (OJ EU, L 167, 6.6.2014).

35

(1) The variable component of total remuneration shall include:

(a) a motivational component, the amount of which depends upon the assessment of

employee performance under Article 23a(1), bank performance, or a combination thereof,

for a period no longer than one year;

(b) a motivational component determined as a share of the bank’s profit;

(c) a motivational component, the amount of which depends upon the results of the bank’s

long-term business strategy and interests;

(d) securities, which a person mentioned in Article 23a(1) may trade on the securities market

no earlier than three years after the date of issue;

(e) other financial instruments selected in accordance with the bank’s creditworthiness,

including instruments specified in a separate regulation;25af

and

(f) discretionary pension benefits.

(2) Banks shall set the terms of variable remuneration payment so that the payment of

at least 40% of the variable remuneration component payable to a person referred to in Article

23a(1) is deferred for a period of at least three years but not more than five years since when

the amount of variable remuneration is determined. Where the total amount of variable

remuneration exceeds a monthly average of 200% of the guaranteed fixed remuneration

component, the pro-rata remuneration related to a period of three to five years must not be

lower than 60% of the variable remuneration component.

(3) When setting the criteria for determining the variable component of total

remuneration under paragraph 1(c), banks shall follow their long-term business strategy,

interests and objectives. The amount of variable remuneration payable to a person referred to

in Article 23a(1) shall be determined on the basis of an assessment of the bank’s actual results

achieved over for a period of at least three years but not more than five years.

(4) In accordance with their long-term business strategy and interests, banks shall set

specific objectives to be incorporated in their risk management system. These objectives must

correspond to the present and future risks arising from banking activities. Banks shall also set

criteria for the performance-related assessment of individual persons pursuant to Article

23a(1). These criteria shall be used to determine the amount of variable remuneration. Banks

shall set these objectives and criteria so that, in the event of non-compliance with the set

objectives or performance-related assessment criteria, the variable remuneration of a person

mentioned in Article 23a(1) be reduced in proportion to the degree of non-compliance, or

cancelled for the assessed period.

(5) Variable remuneration paid to a person referred to in Article 23a(1) in the form of

securities and other financial instruments pursuant to paragraph 1(d) and (e) must account for

at least 50% of the total amount of variable remuneration.

(6) Any person mentioned in Article 23a(1) being trained for independent work may

be exceptionally paid variable remuneration in a guaranteed amount over a period of up to one

year, from the conclusion of an employment contract with the bank, regardless of the

performance assessment results.

(7) In determining the variable component of total remuneration, banks shall also take

into account their ability to meet the obligations set out in Article 29.

25af

) Articles 28, 52 and 63 of Regulation (EU) No 575/2013.

36

(8) Banks shall set criteria, as part of the remuneration principles, for deductions from

the variable remuneration component and for the recovery of an amount paid as variable

remuneration. Subject to deductions from, and to the recovery of, an amount paid as variable

remuneration, will be 100% of the variable remuneration component paid in total. This

criterion shall also be applied where a person referred to in Article 23(1) is involved in, or is

responsible for, an action causing a major financial loss to the bank.

(9) Banks shall set criteria, as part of the remuneration principles, for the payment of

discretionary pension benefits.

(10) Employees as defined in Article 23a(1)(b) to (d) may not secure their variable

remuneration by arranging insurance for the case of non-payment.

Article 23c

The provisions of Article 23b(1) shall be without prejudice to the provisions of Article

118 of the Labour Code. Provisions of the Labour Code pertaining to wage payment terms,

payment and deductions shall apply as appropriate to the variable component of total

remuneration under Article 23b(1)(d) to (f).

Article 23d

(1) Banks shall set up a remuneration committee in compliance with the criteria laid

down in Article 23(9)(g) or shall put a person in charge of the bank’s remuneration system.

The remuneration committee or the person in charge of the bank’s remuneration system shall:

(a) exercise independent judgement on the remuneration principles and their implications for

risk management, own funds, and liquidity;

(b) be responsible for the preparation of decisions concerning remuneration, including those

with implications for risks and risk management, which are to be taken by the statutory

body;

(c) take in account the long-term interests of the bank’s shareholders, investors, and other

parties when preparing decisions;

(d) supervise the remuneration of persons referred to in Article 23a(1)(a) and (b).

(2) The remuneration committee of a bank is to consist of at least three members. A

member of such committee may be only a member of the bank’s supervisory board; this also

applies to supervisory board members elected by the bank’s employees.

Article 23e

(1) Banks shall notify Národná banka Slovenska in writing of the persons whose total

remuneration in the bank for the respective accounting period amounts to at least

EUR 1,000,000, and of the number of such persons, by 30 June every year. Where the

accounting period is a fiscal year rather than a calendar year, the notification period according

to the previous sentence shall be extended by the period of time between the end of the

calendar year and the end of the fiscal year.

(2) In exercising supervision, Národná banka Slovenska shall use the information

disclosed under Article 37(9)(h) for the purpose of comparing the trends and procedures

observed in the area of remuneration.

37

(3) Národná banka Slovenska shall send the information disclosed under

Article 37(9)(h) to the European supervisory authority (European Banking Authority).25a

Article 24

(1) A bank shall have a statutory body and a supervisory board. The statutory body is

the board of directors. Both the statutory body and the supervisory board must have at least

three members.

(2) The members of a bank’s statutory body shall be responsible for the preparation,

approval, and observance of the bank’s organisational structure, for the adoption and

operation of the bank’s management system, and for the conduct of banking activities in

accordance with the bank’s internal regulations.

(3) The statutory body members shall be familiar with, control and monitor the

activities the bank is authorised to perform, ensure the safety and soundness of the bank,

adopt and regularly review the general principles of remuneration, and maintain an effective

risk management system. For the purposes of this Act, ‘safety and soundness of a bank’

means such conduct of banking activities that does not endanger the maintenance of the

bank’s own funds at the required level, liquidity, compliance with the exposure limits, the

legitimate interests of depositors and other creditors, or the banking system.

(4) The members of a bank’s supervisory board shall be familiar with and supervise

the performance of banking activities, the exercise of powers by the statutory body, and the

conduct of other activities. The supervisory board members shall monitor compliance with the

remuneration principles adopted by the statutory body and ensure the secure and effective

functioning of the risk management system. Banks shall deliver a report to Národná banka

Slovenska on the verification of compliance with the remuneration principles by 30 June of

the year following the calendar year for which the report is compiled.

(5) The statutory body members, supervisory board members, and senior employees

of a bank shall exercise their rights and obligations in accordance with the law of the Slovak

Republic in order to achieve an increase in the value of the bank’s shares or profits. The

foregoing is without prejudice to their duties pursuant to paragraphs 3 and 4.

Article 25

(1) A member of a bank’s statutory body may not constitute, or be a member of, the

statutory body, general proxy, or a member of the supervisory board of another legal person

engaged in business.26a

A bank’s general proxy or employee may not constitute, or be

a member of, the statutory body, general proxy, or a member of the supervisory board of

another legal person that is a client of the same bank, unless paragraphs 14 and 15 provide

otherwise.

(2) A member of a bank’s supervisory board may not be a member of the statutory

body or employee of the same bank, nor a member of another bank’s supervisory board or

25a

) Article 8(1)(1) and Article 76(4) of Regulation (EU) No 1093/2010 of the European Parliament and of the

Council of 24 November 2010 establishing a European supervisory authority (European Banking

Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC

(OJ L 331, 15.12.2010). 26a

) Article 2(2) and Article 23 of the Commercial Code.

38

statutory body, or an authorised representative or a person authorised on the basis of an entry

in the Commercial Register to act on behalf of the same or another bank, or another legal

person that is a client of the same bank; this shall not apply where such client is another bank

or a foreign bank controlling the same bank. A member of a bank’s supervisory board may be

an employee of the same bank only if elected to a position by the bank’s employees.

(3) Members of a bank’s statutory body or supervisory board, or employees of that

bank, may not use any information that has not yet been published and that has been obtained

by them in connection with their position or employment with the aim of attempting to

conclude or concluding, either directly or indirectly, a transaction for their own account or for

the account of a third party. Members of a bank’s statutory body or supervisory board, or

employees of that bank, may not misuse any information acquired in connection with their

position or employment to gain undue benefits either for themselves or for a third party.

(4) The head of a bank’s internal control and internal audit unit shall be appointed and

dismissed with the prior approval of the supervisory board or at the suggestion of the

supervisory board. The remuneration of the head of a bank’s internal control and internal

audit unit shall be determined under the same conditions by the bank’s statutory body. The

bank’s supervisory board shall be authorised to request the internal control and internal audit

unit’s head to carry out an audit in the bank in the range it specifies.

(5) The head of a bank’s internal control and internal audit unit shall notify the bank’s

supervisory board and Národná banka Slovenska without delay of any shortcomings found

during the activity performed under Article 23(4).

(6) The head of a bank’s internal control and internal audit unit may not be a member

of the statutory body or supervisory board of the same bank, nor a member of the statutory

body or supervisory board of another legal person.

(7) ‘Ancillary services undertaking’ means ancillary services undertaking as defined

in a separate regulation.26c

(8) The prohibitions and restrictions stipulated in paragraphs 1 and 2 for a bank’s

statutory body members and employees shall not apply to their membership of the statutory

body or supervisory board of a legal person not engaged in business.26d

(9) The members of a bank’s statutory body and supervisory board shall perform their

tasks and duties properly, honestly, and independently throughout the term of office, and shall

devote enough time to these tasks and duties.

(10) Banks shall ensure personnel and financial resources for the continuous

professional training of their statutory body members and supervisory board members.

(11) In selecting their statutory body and supervisory board members, banks shall

follow the rules laid down in a separate regulation.26e

(12) After disclosing information under a separate regulation,26f

banks shall deliver

the information disclosed to Národná banka Slovenska without undue delay.

26c

) Article 4(1) point 18 of Regulation (EU) No 575/2013. 26d

) For example, Act No 213/1997 Coll., as amended, and Act No 34/2002 Coll., as amended. 26e

) Article 435(2)(b) and (c) of Regulation (EU) No 575/2013.

39

(13) Národná banka Slovenska shall, without delay, report the information mentioned

in paragraph 12 to the European supervisory authority (European Banking Authority).

(14) A member of a bank’s statutory body or supervisory board may be a member of

no more than one statutory body and three supervisory boards at the same time or a member

of no more than five supervisory boards without being a statutory body member, in the case

of membership of:

(a) another bank that is part of the same institutional system of protection under a separate

regulation;26g

(b) another legal person that is engaged in business26a

and belongs to the same group;

(c) the stock exchange26b

;

(d) the central securities depository16

or

(e) another legal person in which the bank has a qualifying holding.

(15) For the purposes of paragraph 14, one or more statutory body or supervisory

board member positions in entities referred to in paragraph 14(a), (b), and (e) are considered

to be one position only.

(16) In granting prior approval pursuant to Article 9(4), Národná banka Slovenska

shall also take into account the individual circumstances, the nature, range, and complexity of

the bank’s activities, and the time devoted to the performance of the tasks of a statutory body

member or a supervisory board member.

Article 26

(1) The provisions of Articles 24 and 25 are without prejudice to the provisions of

a separate regulation1.

(2) The provisions of Articles 23 to 25, except for the provisions concerning

remuneration, shall similarly apply to branches of foreign banks, as well as to the chief

executive officers and employees of such branches.

PART SIX

REQUIREMENTS FOR THE OPERATIONS OF BANKS

OR BRANCHES OF FOREIGN BANKS

Article 27

(1) Banks and branches of foreign banks shall conduct transactions with their clients

on a contractual basis. Banks and branches of foreign banks shall proceed with prudence

when performing their activities, and shall in particular carry out transactions:

(a) in a manner that takes into account and mitigates the risks involved;

26f

) Article 433 and Article 435(2)(c) of Regulation (EU) No 575/2013. 26g


40

(b) in a manner that does not harm the interests of depositors in regard to the recoverability

of their deposits and does not threaten the security or financial position of the bank or

foreign bank branch concerned, nor the smooth functioning of the banking system,

without breaching the applicable laws or other generally binding regulations;

(c) under economic and legal conditions that are favourable for the bank or foreign bank

branch concerned, as well as for its clients when transactions are made for the client’s

account, and with due professional care; banks and branches of foreign banks shall

provide convincing proof of such professional care;

(d) in a manner ensuring that, in each transaction, at least two persons are involved on behalf

of the bank or foreign bank branch concerned; if this is not possible for operational

reasons, they shall forthwith ensure that the transaction is checked by persons who were

not involved in its execution.

(2) In order to prevent losses or damage arising from the incorrect performance of

banking activities, banks and branches of foreign banks shall follow the correct procedures in

conducting banking activities and shall adopt and maintain an effective risk management

system. Banks and branches of foreign banks shall modify their risk management system on

the basis of regular reviews of the system’s functionality and effectiveness so that it takes into

account the ability of the bank or foreign bank branch concerned to face risks and the

consequences of the changing economic environment. Banks and branches of foreign banks

shall, if necessary, adjust the risk management system and the method of its updating through

internal regulations, according to which they are obliged to proceed.

(3) For the purposes of paragraphs 2 and 4, banks may set up a committee for risk

management; if a bank fails to set up a risk management committee, it shall delegate the risk

management tasks to its audit committee as defined in a separate regulation26ga

, which

conducts activities pursuant to paragraphs 2 and 4.

(4) The organisation structure of a bank must include a senior employee and other

employees responsible for risk management, which, for the purposes of this Act, means:

(a) the monitoring and implementation of the bank’s risk management strategy and

procedures pursuant to paragraph 1;

(b) the presentation of an activity report in writing to the bank’s statutory body and

supervisory board at least once a year;

(c) the provision of support and information to the bank’s statutory body and supervisory

board in connection with risk identification, risk analysis, risk monitoring, risk recording,

and risk management;

(d) the verification of whether the values of assets and liabilities offered to clients reflect the

bank’s business and investment objectives and its risk management strategy.

(5) The employees referred to in paragraph 4 shall perform risk management tasks

independently from the bank’s other units and shall inform the supervisory board without

delay of any shortcoming that may lead to a breach of duties under paragraph 1.

(6) A senior employee as referred to in paragraph 4 may be recalled only with the

supervisory board’s prior consent.

(7) Banks shall have their own system in place for assessing and maintaining the

adequacy of their internal capital with regard to the risks to which they are or may be

26ga

) Article 19a of Act No 431/2002 Coll. on accounting, as amended.

41

exposed. The internal capital adequacy assessment system shall correspond to the nature,

scope, and complexity of the banking activities performed and shall include:

(a) a strategy for controlling the level of internal capital;

(b) a procedure for determining the adequate level of internal capital, the composition of

internal capital, and the allocation of internal capital for risk coverage;

(c) a system for maintaining the bank’s internal capital at the required level.

(8) The internal capital of banks must be adequate for market risks that are not subject

to an own funds requirement. Banks which have, in calculating their own funds requirements

for position risk under a separate regulation,26h

netted off their positions in one or more of the

equities constituting a stock-index against one or more positions in the stock-index future or

other stock-index product shall have adequate internal capital to cover the basis risk of loss

caused by the future’s or other product’s value not moving fully in line with that of its

constituent equities. Banks shall also have such adequate internal capital where they hold

opposite positions in stock-index futures which are not identical in respect of either their

maturity or their composition or both. When using the procedure stipulated in a separate

regulation,26i

banks shall ensure that they hold sufficient internal capital against the risk of

loss which exists between the time of the initial commitment and the following working day.

(9) Banks and branches of foreign banks shall:

(a) continuously maintain their solvency;

(b) manage their assets and liabilities so as to ensure uninterrupted liquidity and observance

of the liquidity ratios;

(c) inform Národná banka Slovenska without delay of the actual or expected non-fulfilment

of duties pursuant to subparagraph (b) and then submit to Národná banka Slovenska

a plan for the timely recovery of their liquidity ratios.


(a) ‘exercising professional care’ means that a bank or a foreign bank branch performs the

following activities:

1. compares the price offers received for individual transactions or justifies the

unsuitability or impossibility of assessing several offers;

2. records how a transaction is made, checks the objectivity of the recorded data, and

prevents own losses, including damage;

3. carries out an analysis of the economic benefits of transactions on the basis of the

information available;

4. draws up business and investment plans as a basis for carrying out individual

transactions;

(b) ‘solvency’ means the ability to make due and timely payments to discharge financial

liabilities;

(c) ‘liquidity’ means the ability to convert assets into cash without unnecessary losses in

order to make due and timely payments to meet financial liabilities.

(11) Where a bank or a foreign bank branch makes a mistake when providing payment

or settlement services, it shall ensure, at its own expense and without undue delay, that the

mistake is rectified.

26h

) Articles 326 to 350 of Regulation (EU) No 575/2013. 26i


42

(12) Banks and branches of foreign banks may not conclude a contract under terms

and conditions that are obviously disadvantageous to them, in particular contracts that oblige

them to make an economically unjustified payment or a payment evidently not corresponding

to the counter value provided, or contracts that evidently fail to provide sufficient security for

their receivables.

(13) A bank shall establish legal relations with the members of its statutory body and

a foreign bank branch with the head of the branch in a written contract, which is not governed

by a separate regulation27

and which is in accordance with this Act.

(14) In a decree23



(a) details about the risk management systems of banks and the rules set out in paragraph 2,

and other types of risks;

(b) the liquidity ratios and details about liquidity pursuant to paragraph 9, including the

method of its calculation;

(c) the percentage ratios referred to in paragraph 19, expressing a bank’s foreign exchange

position in a foreign currency and total foreign exchange position in relation to its own

funds, as well as details of how to calculate the foreign exchange position in different

currencies and the total foreign exchange position;

(d) the extent to which the rules set out in subparagraphs (a) to (c) apply to branches of

foreign banks.

(15) The head of a foreign bank branch shall be fully liable for any damage they may

cause during the performance of their duties where this results from non-compliance with an

obligation by the head of the branch, arising from the applicable laws, other generally binding

regulations, or the internal regulations of the foreign bank branch in question.

(16) A bank or a foreign bank branch may not perform any legal act at its own

expense in favour of a member of the bank’s statutory body, a member of the bank's

supervisory board, or the head of the foreign bank branch in regard to insurance against

liability for damage caused during the performance of their duties or in regard to insurance

against being dismissed from their posts. If a bank or a foreign bank branch dismisses such

persons from their posts on grounds of untrustworthiness under Article 50(2), it shall not pay

them any agreed remuneration or remuneration conferred under its internal regulations; the

right to any such remuneration shall expire.

(17) The supervisory board of a bank shall ensure that compensation is claimed for

any damage caused to the bank and for which a statutory body member is responsible in

accordance with paragraph 18.

(18) A member of a bank’s statutory body shall be fully liable for any damage they

may cause during the performance of their duties where this results from the breach of a

statutory body member’s obligation arising from the relevant laws, other generally binding

legal regulations, or from the bank’s articles of association or internal regulations.

(19) Banks shall perform their activities in a manner ensuring that the following

percentage ratios mentioned in paragraph 14(c) are not exceeded:

(a) the ratio of foreign exchange positions in the individual currencies to own funds;

27

) The Labour Code.

43

(b) the ratio of the total foreign exchange position to own funds.

Article 27a

(1) Banks and branches of foreign banks may use independent financial agents or

bound financial agents for financial intermediation in accepting deposits and providing loans

in accordance with a separate law.27a

Banks, foreign banks, and branches of foreign banks

shall be entitled to use the persons mentioned in the first sentence only if such persons are

registered in the Register of Financial Agents, Financial Advisors, and Financial

Intermediaries from another Member State in the Insurance or Reinsurance Sector and Bound

Investment Agents.27b

(2) Banks and branches of foreign banks may use, for financial intermediation in

accepting deposits and providing loans, only persons authorised to perform such activity.

Article 27b

(1) Banks and branches of foreign banks shall ensure that employees who come into

contact with non-professional clients have appropriate professional qualifications.27c

(2) ‘Professional qualifications of employees’ pursuant to paragraph 1 means the

basic level of professional qualifications under a separate law.27d

(3) Banks and branches of foreign banks shall ensure the verification of professional

qualifications of their employees under paragraph 1 using the procedure stipulated in a

separate law27e

.

(4) Banks, foreign banks, and branches of foreign banks shall keep a list of the

employees referred to in paragraph 1.

Article 27c

Provision of basic banking products

(1) Banks and branches of foreign banks shall provide banking services to clients,

who are deemed to be consumers27f

(hereinafter referred to as ‘consumers’), in the range of

a basic banking product, provided that:

(a) the consumer has attained 18 years of age;

(b) the consumer submits a written application to a bank or a foreign bank branch for the

provision of a basic banking product;

(c) when applying for a basic banking product, the consumer has no payment account with

that bank or foreign bank branch, except for a deposit account, a debtor’s special account

under Article 27f27fa

, a passbook account or a savings account opened under a savings

scheme for saving through a payment card or through regular money transfers or for one-

off savings;

27a

) Articles 7 and 8 of Act No 186/2009 Coll. 27b

) Article 13 of Act No 186/2009 Coll. 27c

) Article 5(3) of Act No 186/2009 Coll. 27d

) Article 21(3)(a) of Act No 186/2009 Coll. 27e

) Article 22 of Act No 186/2009 Coll. 27f

) Article 52(4) of the Civil Code. 27fa

) Article 716 of the Commercial Code.

44

(d) the consumer does not have a net monthly income higher than EUR 400 as at the date

when the application for a basic banking product is submitted;

(e) the bank or foreign bank branch concerned provides such banking services to the

consumer as part of its business activity; and

(f) the bank or foreign bank branch already provides the consumer with at least two banking

services related to a payment account within the scope of one transaction.

(2) The consumer shall confirm the facts mentioned in paragraph 1(c) and (d) in

a statutory declaration.

(3) If a consumer requests the payment-service provider with which they have

a payment account to switch that payment account to a basic banking product, the payment-

service provider shall forthwith meet the consumer’s request free of charge.

(4) While using a basic banking product provided by a bank or a foreign bank branch,

the consumer may not open any other payment account, except for a deposit account,

a debtor’ s special account under Article 27f, a passbook account or a savings account under a

savings scheme for saving through a payment card or through regular money transfers or for

one-off savings.

(5) Where a bank or a foreign bank branch finds that a statutory declaration as

mentioned in paragraph 2 contains untrue information or that the provisions of paragraph 3

are not observed, the bank or foreign bank branch shall stop providing the basic banking

product to the consumer, unless the bank or foreign bank branch and the consumer agree

otherwise.

(6) Where the sum of payment operations credited to a consumer’s payment account

over a calendar year as part of a basic banking product is higher than EUR 5,600, the bank or

foreign bank branch shall stop providing the basic banking product to the consumer, unless

the bank or foreign bank branch and the customer agree otherwise.

(7) An application for the provision of a basic banking product shall contain the first

and last names, birth certificate number, and permanent residence address of the applicant for

a basic banking product.

(8) Where a bank or a foreign bank branch rejects a consumer’s application for the

provision of a basic banking product, it shall forthwith inform the consumer in writing of the

reasons for such rejection.

(9) Consumers may carry out payment operations in accordance with point 2 of

Article 5(s) through:

(a) payment cards;

(b) the place where their bank or foreign bank branch operates;

(c) technical equipment enabling remote access to their payment account.

(10) Banks and branches of foreign banks shall provide, within the scope of a basic

banking product, banking services in euro in the range and manner specified in a generally

binding legal regulation issued by the Ministry; the maximum fee for a basic banking product

shall be stipulated in the same generally binding legal regulation.

45

(11) Within the scope of a basic banking product, banks and branches of foreign

banks may not provide loans to consumers in the form of an authorised overdraft facility in

connection with payment operations conducted under Article 5(s),

(12) Banks and branches of foreign banks may not tie a basic banking product to the

provision of another product or service.

(13) Banks and branches of foreign banks shall keep a record of the basic banking

products they provide to consumers, at least in the range of data specified in paragraph 6,

including the dates when a basic banking product is provided and terminated.

(14) Banks and branches of foreign banks shall supply, by 25 January of the

respective calendar year, the Ministry with information for the previous calendar year,

specifically:

(a) the number of newly provided and cancelled basic banking products;

(b) the number of rejected applications for the provision of a basic banking product,

including the reasons for such rejection;

(c) the fee charged for a basic banking product.

(15) The Ministry shall, at least once a year, inform the European Commission of the

basic banking products in the range specified in paragraph 13.

(16) Banks and branches of foreign banks shall disclose information about basic

banking products under paragraph 17 on their websites, as well as on their business premises;

they shall, upon request, provide such information to consumers free of charge, either in paper

form or on durable media.72d

(17) The information mentioned in paragraph 16 shall comprise:

(a) the terms and conditions for the provision of a basic banking product;

(b) the banking services included in a ‘basic banking product’ package;

(c) the scale of fees charged for basic banking products;

(d) information on the settlement of disputes out of court.

Article 27d

Opening a payment account with basic features

(1) Banks and branches of foreign banks shall provide banking services to eligible

persons in the range of a standard account, provided they provide all the banking services

linked to a standard account as part of their business activity. They shall open standard

accounts for eligible persons on the basis of an application for a standard account, unless there

are compelling reasons not to do so in accordance with paragraph 7.

(2) For the purposes of this Act, ‘eligible person’ means a client who is a consumer27f

and a resident of the European Union. Also classified as eligible persons are consumers

without residence in the Slovak Republic, asylum seekers and consumers without a residence

permit who cannot be exiled on legal or factual grounds.27faa

27f) Article 52(4) of the Civil Code. 27faa)

Article 81 of Act No 404/2011 Coll., as amended by Act No 75/2013 Coll. Article 65 of the Criminal Code, as amended.

46

(3) An application as referred to in paragraph 1 shall contain the eligible person’s first

and last name, birth registration number, address of residence, and the type and number of

their identity document.73

Attached to the application shall be a statutory declaration made by

the eligible person, stating that they have no other payment account13mb

with a bank or

a foreign bank branch, except for a deposit account, a debtor’s special account under Article

27f, a passbook account or a savings account opened under a savings scheme for saving

through a payment card or through regular money transfers or for one-off savings.

(4) An eligible person for whom a standard account has already been opened may not

open another payment account with a bank or a foreign bank branch, except for a deposit

account, a debtor’s special account under Article 27f, a passbook account or a savings account

under a saving scheme for saving through a payment card or through regular money transfers

or for one-off savings.

(5) Banks and branches of foreign banks shall open a standard account, or shall reject

the relevant application in accordance with paragraph 1, within ten working days of the date

following the receipt of a complete application.

(6) If an application submitted under paragraph 1 is incomplete or improperly made,

the bank or foreign bank branch shall request the eligible person concerned to correct or

supplement the application within 30 calendar days of the delivery date of the request sent to

the eligible person and shall inform the eligible person of the possible consequences of their

failure to comply.

(7) Banks and branches of foreign banks shall reject an application submitted under

paragraph 1 where:

(a) the opening of a standard account contradicts the applicable regulation21a

;

(b) the eligible person has a payment account with a bank or a foreign bank branch, including

all the banking services linked to a standard account;

(c) the time period defined in paragraph 6 has elapsed.

(8) If a bank or a foreign bank branch decides to reject an application submitted under

paragraph 1, it shall promptly inform in writing the eligible person concerned free of charge,

unless the reasons for rejecting such application are subject to the confidentiality requirement

on grounds of public order, state security or a separate regulation21a

, about:

(a) the reasons why it has decided to reject the application;

(b) the procedure for lodging a complaint against such rejection;

(c) the right to lodge a complaint to Národná banka Slovenska;

(d) the authorities competent to settle disputes out of court;

(e) the contact data of these authorities.

(9) Banks and branches of foreign banks shall open a standard account for an eligible

person who has a payment account with a bank or a foreign bank branch, which comprises all

the banking services linked to a standard account, if that person presents a document

confirming that the said payment account has been closed no later than the day preceding the

date when the standard account is to be opened by the bank or foreign bank branch concerned.

A document confirming the closure of a payment account is to be issued free of charge.

(10) If a consumer cancels a payment account that is related to a mortgage loan and

subsequently applies for a standard account to be opened with the same bank or foreign bank

branch, that bank or foreign bank branch may not provide such a mortgage loan to the same

47

consumer under less favourable conditions than it had provided before the closure of the

payment account that was linked to a mortgage loan.

(11) If a consumer requests a payment-service provider with which they have

a payment account to switch that payment account to a standard account, the payment-service

provider shall promptly comply with this request free of charge.

(12) If an eligible person has a payment account comprising the same banking

services as a standard account, the bank or foreign bank branch with which the eligible person

has a payment account shall, once a year, inform the eligible person concerned, in

a demonstrable manner, of the possibility of opening a standard account.

(13) Banks and branches of foreign banks may agree with an eligible person about the

provision of services or products linked to a standard account above the limits of payment

services as specified in Article 5(ae), for which fees may be charged.

(14) Banks and branches of foreign banks may not make the opening of a standard

account conditional on the purchase of further services or shares27fbb

from the bank or foreign

bank branch concerned, where this condition applies to all clients.

(15) Banks and branches of foreign banks shall provide banking services in euro to

holders of standard accounts within the scope and in the manner stipulated by a generally

binding legal regulation issued by the Ministry; this regulation shall also specify the

maximum level of the fee charged for a standard account.

(16) Banks and branches of foreign banks shall stop maintaining a standard account

for an eligible person who is found to:

(a) have used a payment account in contrast with the applicable regulation21a

;

(b) have carried out no payment operation through their payment account for more than

24 consecutive months;

(c) have provided demonstrably false information in order to obtain a standard account;

(d) have no place of residence in the European Union; or

(e) have a payment account comprising the same banking services as a standard account.

(17) If a bank or a foreign bank branch terminates by notice a standard-account

agreement on the grounds listed in paragraph 16(b), (d) and (e), it shall promptly inform in

writing the eligible person concerned free of charge, no later than two months before the

effective date of the notice; this shall not apply where such information may not be disclosed

on grounds of public order or state security. The closure of a standard account on the grounds

mentioned in paragraph 16(a) and (c) will become effective on the day when the notice

terminating the standard-account agreement is given.

(18) A bank or a foreign bank branch terminating a standard-account agreement shall,

when delivering the notice of termination, inform in writing the eligible person concerned free

of charge as to which authority is competent to deal with and settle out of court submissions

regarding the termination by notice of standard-account agreements, including the contact

data of that authority.

27fbb

) Article 2(2) of Act No 566/2001, as amended by Act No 659/2009 Coll.

48

(19) Eligible persons may carry out payment operations as specified in point 2 of

Article 5(ae) within the European Union through:

(a) payment cards;

(b) the places where their bank or foreign bank branch performs its activities;

(c) technical equipment enabling remote access to their payment account, if such equipment

is provided by the bank or foreign bank branch.

(20) Banks and branches of foreign banks shall, by 10 September of each calendar

year, supply the Ministry with information for the previous calendar year, specifically:

(a) the number of newly opened and closed standard accounts;

(b) the number of applications rejected under paragraph 1 and the reasons for their rejection;

(c) the fee charged for a standard account with basic features.

(21) The Ministry shall, every second year, supply information to the Commission in

regard to standard accounts in the range specified in paragraph 20.

(22) Národná banka Slovenska shall, every second year, supply information to the

Commission in regard to the number of banks and foreign bank branches offering standard

accounts.

(23) Banks and branches of foreign banks shall make available on their websites and

business premises any or all of the information listed in paragraph 24; they shall, upon

request, provide such information to consumers free of charge, either in paper form or

electronically on durable media.72d

(24) Information on standard accounts with basic features shall be disclosed in the

following range:

(a) banking services linked to a standard account;

(b) information on fees and charges;

(c) reasons for rejecting an application under paragraph 1;

(d) information on prohibition as defined in paragraph 14;

(e) information on the settlement of disputes out of court.

Article 27e

Banks and branches of foreign banks shall, when considering an application for the

opening of, or access to, a payment account, treat a consumer who is a resident of the

European Union in accordance with the principle of equal treatment laid down in a separate

regulation.27bfc

Under the said principle, discrimination on the grounds of nationality or place

of residence shall be prohibited in relation to consumers who are residents of the European

Union.

Article 27f

Opening and maintaining a debtor’s special account

(1) Banks and branches of foreign banks shall, at the request of a debtor’s trustee in

bankruptcy, open and maintain a debtor’s special account under a separate regulation13mc

27bfc

) Act No 365/2004 Coll. on equal treatment in certain areas and protection against discrimination (and

amending certain laws) (the Anti-Discrimination Act), as amended. 27fbd

) Article 167o(4) of Act No 7/2005 Coll. on bankruptcy and restructuring (and amending certain laws), as

amended.

49

provided that the provisions of banking services under Article 5(ag) falls within the scope of

their business.

(2) The obligation to maintain a debtor’s special account expires after the period set

out in a separate regulation.27fbd

No later than two months before a debtor’s account expires,

the bank or foreign bank branch shall inform the account holder of this fact; it shall also

inform the account holder that the balance of the account may be paid out in cash or

transferred to another account with a bank or a foreign bank branch and that the debtor’s

special account may be converted into another account provided that the bank or foreign bank

branch permits such conversion.

(3) The fee for a debtor’s special account including the minimum range of services

under Article 5(ag) shall not exceed €2 per month and shall be debited from the account

balance.

Article 28

(1) The prior approval of Národná banka Slovenska shall be required in order to:

(a) acquire or increase a qualifying holding in a bank so that the share in the bank’s share

capital or voting rights reaches or exceeds 20%, 30% or 50%, or so that the bank

becomes a subsidiary of a person that acquires such a holding in one or more

transactions, whether directly or by acting in concert; for the calculation of such holdings,

the voting rights shall not be taken into account, nor shall be taken into account the shares

that a securities dealer, a foreign securities dealer, another bank or a foreign bank hold as

a result of underwriting or placing of financial instruments on a firm commitment

basis,27g

unless such rights are exercised or performed otherwise to interfere with the

management of the bank, and provided that they are transferred by the securities dealer,

the foreign securities dealer, another bank or foreign bank to a third party within a year

upon their acquisition;

(b) consolidate, merge, or split a bank, including the consolidation or merger of another legal

person with the bank, or to return a banking authorisation, and to reduce the bank’s share

capital, unless the reduction is due to a loss;

(c) dissolve a bank for reasons other than those specified under subparagraph (b) or to

change its legal form; in this case, the bank shall return its banking authorisation on the

date specified in the prior approval decision;

(d) sell a bank, a foreign bank branch, or parts thereof;28

(e) use the shares issued by a bank as the subject of security for the liabilities of the holder of

these shares or of another person, except for cases where the subject of such security are

shares accounting in total for less than 5% of the bank’s share capital in one or more

transactions, whether directly or by acting in concert.

(2) For prior approval to be issued under paragraph 1, the conditions set out in Article

7(2) and (4) are to be met as appropriate; for prior approval to be issued, the transparent and

credible origin21a

, sufficient volume, and correct structure of financial resources are to be

documented prior to the operation for which prior approval is requested. Prior approval under

paragraph 1(a) may only be issued if the acquisition or exceeding of a holding by the acquirer

does not prove to affect adversely the bank’s ability to meet the obligations stipulated by this

Act. The splitting, consolidation, merger, or dissolution of a bank, including its merger with

another legal person, or the sale of a bank or part thereof,28

may not be to the detriment of the

bank’s creditors; this also applies to the sale of a foreign bank branch or part thereof.28

27g

) Article 6(1)(f) of Act No 566/2001 Coll., as amended by Act No 209/2007 Coll. 28

) Articles 476 to 488 of the Commercial Code.

50

(3) The provision of paragraph 1 is without prejudice to the provisions of a separate

regulation29

.

(4) It is possible to proceed on the basis of a prior approval granted under paragraph 1

for a period of up to one year, unless such approval is granted for a shorter period or unless

Národná banka Slovenska stipulates otherwise.

(5) Without prior approval from Národná banka Slovenska under paragraph 1, every

legal act for which prior approval is required shall be null and void. A legal act performed on

the basis of a prior approval granted on the basis of false data shall also be invalid. This shall

not apply to the acquisition of, or increase in, a qualifying holding in a bank under paragraph

1(a) indirectly as a result of a foreign stabilisation measure aimed at mitigating the impacts of

the global financial crisis and the sale of a foreign bank branch or part thereof under

paragraph 1(d), through which the foreign stabilisation measure alleviates the impacts of the

global financial crisis.

(6) An application under paragraph 1(a) shall be submitted by persons that intend to

acquire or increase a qualifying holding in a bank, or by a person that has decided to become

the parent company of the bank. An application under paragraph 1(b) and (c) shall be

submitted by a bank or, in the case of consolidation or merger, jointly by a bank and the legal

person to be consolidated or merged. An application under paragraph 1(d) shall be submitted

jointly by a bank or a foreign bank and the person acquiring the bank, foreign bank branch, or

part thereof. An application under paragraph 1(e) shall be submitted by a shareholder who

intends to use the shares as security for the shareholder’s liabilities. The persons mentioned in

this paragraph shall inform Národná banka Slovenska without delay of their intention to

perform an act under paragraph 1.

(7) The elements of an application for prior approval under paragraph 1, as well as the

documents to be attached to such application, shall be stipulated by Národná banka Slovenska

in a decree23

promulgated in the Collection of Laws.

(8) The person mentioned above shall, upon written request, provide Národná banka

Slovenska with information within the time limit set in the request, for the purpose of

determining whether an action requiring prior approval under paragraph 1 has taken place,

especially with information about the shareholders of commercial companies or cooperatives,

and information about agreements on the exercise of voting rights.

(9) A person intending to cancel a qualifying holding in a bank or to reduce its

interest in the bank’s share capital or voting rights below 20%, 30% or 50%, or to such an

extent that the bank ceases to be its subsidiary, shall report this fact in writing to Národná

banka Slovenska in advance.

(10) A bank shall forthwith inform Národná banka Slovenska in writing of the facts

mentioned in paragraph 1(a) to (e) and paragraph 9.

(11) A bank trading on a regulated market shall, at least once a year or upon request,

inform in writing Národná banka Slovenska without delay of its shareholders and other

29

) Act No 136/2001 Coll. on protection of economic competition (and amending Act No 347/1990 Coll. on

the organisation of ministries and other central state administration authorities of the Slovak Republic), as

amended by Act No 465/2002 Coll.

51

persons having a right to vote at the bank’s general meetings; the bank shall also inform in

writing the Ministry of its shareholders upon request.

(12) For the purposes of this Act, ‘concerted action’ means:

(a) any action aimed at acquiring a share in a bank’s share capital or voting rights taken by:

1. a legal person and its associates or members, statutory bodies, statutory or

supervisory body members, the legal person’s employees directly reporting to the

statutory body or its member, the heads of organisational units registered in the

Commercial Register, authorised representatives, liquidators, receivers or trustees of

this legal person, and by persons in close relationship30

with them or by any of these

persons;

2. persons who have concluded an agreement on the concerted exercise of voting rights

in a bank in matters concerning its management, regardless of the form of this

agreement or whether it is valid or not;

3. a controlling or controlled person or by persons controlled directly or indirectly by

the same controlling person;

4. closely related persons30

;

(b) any action by two or more legal persons aimed at acquiring a share in a bank’s share

capital or voting rights, where the same natural person is the statutory body, a member of

the statutory body, a member of the supervisory body, an authorised representative, or

holds at least 5% of the legal person’s share capital or voting rights, or has the ability to

exercise for other reasons influence over the management of these legal persons,

comparable with the influence arising from such share.

(13) For the purposes of concerted actions as defined in paragraph 12, ‘controlling

person’ means any person holding a majority interest in a legal person’s voting rights,

because that person has a participating interest in the legal person to which the majority of

voting rights is attached or because, on the basis of an agreement with other persons, that

person is entitled to exercise the majority of voting rights.

(14) For the purposes of concerted actions, ‘controlled person’ means a legal person

in relation to which the controlling person has a position as defined in paragraph 13.

(15) If, through the acquisition of a participating interest pursuant to paragraph 1(a),

a bank becomes part of a consolidated group under Articles 44 to 49, which also includes

a financial holding company, or if it becomes part of a financial conglomerate under

Articles 49a to 49o, which also includes a mixed financial holding company, the granting of

prior approval by Národná banka Slovenska shall be conditional upon the presentation of

documents certifying the professional qualification and trustworthiness of all natural persons

who are members of the statutory body of this financial holding company or mixed financial

holding company.

(16) ‘Professional qualification’ as referred to in paragraph 15 means adequate

knowledge of the financial sector and experience in the area of finance. The trustworthiness of

persons mentioned in paragraph 15 shall be verified in accordance with Article 7(15).

(17) In assessing the fulfilment of conditions under paragraph 2, Národná banka

Slovenska shall consult with the competent authorities of other Member States if the acquirer

as referred to in paragraph 1(a) is:

30

) Article 116 of the Civil Code.

52

(a) a foreign bank, foreign investment firm, foreign asset management company authorised

in another Member State, insurance company from another Member State, or reinsurance

company from another Member State;

(b) the parent company of a person mentioned in subparagraph (a), or

(c) a natural or legal person controlling the person mentioned in subparagraph (a).

(18) Where the acquirer of a participating interest in a foreign bank from a Member

State is a bank, insurance company, reinsurance company, investment firm or asset

management company having its registered office in the territory of the Slovak Republic,

Národná banka Slovenska shall consult with the competent supervisory authority of the

Member State mentioned in Article 7a(1)(a) about the fulfilment of conditions for the

acquisition of a participating interest in a foreign bank established in the territory of

a Member State in accordance with the laws of the Member State concerned.

(19) The subject matter of such consultation under paragraphs 17 and 18 shall be the

timely disclosure of any information required for assessing the fulfilment of conditions for the

acquisition of a participating interest in a domestic or foreign bank. Národná banka Slovenska

shall, upon request, provide the competent supervisory authority of the Member State

concerned with the required information and, on its own initiative, with any other relevant

information. Národná banka Slovenska shall request the competent supervisory authority of

the Member State to supply the information required.

(20) A decision to grant prior approval under paragraph 1(a) shall include the views

or reservations reported to Národná banka Slovenska by the competent authority of the

Member State exercising supervision over the person that has acquired a participating interest

in a bank pursuant to paragraph 1(a).

(21) Národná banka Slovenska shall confirm in writing the delivery of an application

for prior approval under paragraph 1(a) within two business days of the date of delivery of

such application to the acquirer; this also applies to the subsequent delivery of documents

attached to the application that were not delivered with the application. Národná banka

Slovenska may request, in writing, additional information it needs to examine applications

under paragraph 1(a), but no later than the 50th business day of the period set for the

processing of applications under paragraph 2. From the day when Národná banka Slovenska

sends a request for additional information to the day when an answer is delivered, the process

of applying for prior approval shall be suspended, for a period of maximum 20 business days.

If Národná banka Slovenska requests additional or more detailed information, the period for

the issuance of a decision to grant prior approval shall not be suspended. The suspension of

the period under the third sentence may be extended by Národná banka Slovenska by up to 30

business days, if the acquirer is established in, or is governed by the laws of, a non-Member

State, or if the acquirer is not an investment firm, asset management company, bank,

insurance company, reinsurance company, or a similar institution from a Member State.

(22) Národná banka Slovenska shall decide in the matter of an application for prior

approval under paragraph 1(a) within 60 business days after the delivery of this application is

confirmed in writing and after all elements of this application are delivered. If Národná banka

Slovenska fails to decide in this period, the prior approval shall be deemed to be granted.

Národná banka Slovenska shall inform the acquirer of the date when the time limit for the

issuance of a decision lapses in a written confirmation of delivery pursuant to paragraph 1. If

Národná banka Slovenska decides to reject an application for prior approval under paragraph

53

1(a), this decision shall be sent to the acquirer in writing within two business days of the date

of decision, but no later than the date when the time limit defined in the first sentence lapses.

(23) Národná banka Slovenska shall not issue prior approval under paragraph 1 where

the applicant fails to meet any of the conditions set out in paragraphs 2, 6, 8 to 11 or where

the data requested under paragraphs 2, 6, 8 to 11 are incomplete. An application for prior

approval under paragraph 1 may not be rejected on account of the economic needs of the

financial market.

Article 29

(1) Banks shall calculate and systematically monitor the amount of their own funds.

(2) Parent banks as defined in Article 44(2)(a) shall calculate and continuously monitor

the amount of their own funds, as well as the own funds of their consolidated groups.

(3) The own funds of a bank are own funds as defined in a separate regulation.30a

(4) Banks shall maintain their own funds at least at the level of their share capital as

defined in Article 7(2)(a). This is without prejudice to the relevant provisions of a separate

regulation30b

.

Article 30

(1) The use of the internal ratings-based approach for credit risk and its modification

are subject to prior approval by Národná banka Slovenska. Banks, parent banks, and their

banking subsidiaries shall, after obtaining prior approval from Národná banka Slovenska

under a separate regulation30c

, apply the internal ratings-based approach for credit risk to all

their exposures.

(2) Banks intending to implement the internal ratings-based approach for credit risk

on a sequential basis shall need the prior approval of Národná banka Slovenska; sequential

implementation is possible in relation to the individual classes defined in a separate

regulation30d

, the bank’s individual organisational units, or for the use of own estimates of

loss given default or own estimates of conversion factors for the calculation of risk weights

for exposures classified under a separate regulation30e

.

(3) When granting prior approval under paragraph 2, Národná banka Slovenska shall

stipulate a reasonable period and conditions for the sequential use of the internal ratings-based

approach for credit risk. The conditions shall be stipulated so as to ensure that, in respect of

the exposure classes defined in a separate regulation30d

or the bank’s organisational units, the

use of the internal ratings-based approach under a separate regulation30f

is not postponed with

the aim of achieving lower own funds requirements determined according to the standardised

approach for credit risk for those exposure classes or those organisational units. In regard to

the sequential use of own estimates of loss given default or own estimates of conversion

30a

) Article 4(1) point 118 of Regulation (EU) No 575/2013. 30b

) Articles 92 to 386 of Regulation (EU) No 575/2013. 30c

) Articles 142 to 150 of Regulation (EU) No 575/2013. 30d

) Article 147(2) of Regulation (EU) No 575/2013. 30e

) Article 147(2)(a) to (c) of Regulation (EU) No 575/2013. 30f

) Articles 143 and 144 of Regulation (EU) No 575/2013.

54

factors30g

for the calculation of risk weights for exposures classified under a separate

regulation30e

, Národná banka Slovenska shall proceed as according to the previous sentence.

(4) Národná banka Slovenska shall issue prior approval under paragraph 1 for banks

having an appropriate system in place for the management and assignment of ratings to

exposures, which satisfies the technical requirements and meets the conditions set out in

a separate regulation30h

. Národná banka Slovenska shall monitor the application of such

systems for managing and assigning ratings to exposures.

(5) A bank applying for prior approval from Národná banka Slovenska for the use of

own estimates of loss given default or own estimates of conversion factors shall demonstrate

that it has been employing own estimates of loss given default or own estimates of conversion

factors in a manner defined in a separate regulation30h

.

Article 31

(1) To determine the degree of market risk, banks may use their own model for its

calculation, instead of a simplified approach defined in a separate regulation,30i

or a method

combined with this approach, provided that the calculation is based on the conditions laid

down in a separate regulation.30j

The use or modification of an own model shall require the

prior approval of Národná banka Slovenska.


satisfying the conditions set out in a separate regulation30j

.

(3) In connection with the issuance of prior approval under paragraph 1, Národná

banka Slovenska may additionally request a bank to submit a report compiled by an auditor or

by another person specialising in the development or assessment of risk calculation models if

the accuracy of the bank’s own market risk calculation model cannot be assessed from the

documents presented for the verification of compliance with the requirements laid down in

a separate regulation30j

.

(4) Where the short position falls due before the long position, the bank shall take

measures against the risk of a shortage of liquidity.

(5) The elements of an application for prior approval under paragraph 1 and the

documents attached thereto shall be specified in a decree23

issued by Národná banka

Slovenska and promulgated in the Collection of Laws.

(6) Where a bank exceeds several multiplication factors30k

or fails to meet the

conditions stipulated for the issuance of prior approval under paragraph 1, Národná banka

Slovenska may revoke the prior approval granted or impose the necessary measures to remedy

the situation. Apart from the measures referred to in Article 50, these measures may include

the preparation of a recovery plan in accordance with the conditions under which the prior

approval was issued, with concrete deadlines for submission and implementation. If the bank

30g

) Article 145 of Regulation (EU) No 575/2013. 30h

) Articles 144(1) and 145 of Regulation (EU) No 575/2013. 30i

) Article 360 of Regulation (EU) No 575/2013. 30j

) Articles 363 to 377 of Regulation (EU) No 575/2013. 30k


55

fails to submit and implement a recovery plan within the stipulated time limit, the prior

approval granted under paragraph 1 shall be revoked.

Article 32

(1) Apart from the standardised approach for operational risk, banks may also use

other approaches and the corresponding indicators for operational risk under a separate

regulation;30l

other approaches and indicators for operational risk may only be used with the

prior approval of Národná banka Slovenska.


satisfying the conditions set out in a separate regulation30l

.

Article 33

(1) The economic value of a bank may not fall by more than 20% of the value of its

own funds as a result of a sudden and unexpected change in market interest rates. If a sudden

and unexpected change in market interest rates, the effect of which is quantified from

positions recorded in the banking book, causes the bank's economic value to decline by more

than 20% of its own funds, Národná banka Slovenska shall impose a corrective measure on

the bank in accordance with Article 50(1).

(2) For the purposes of this Act, ‘the economic value of a bank’ means the difference

between the fair value of interest rate-sensitive assets recorded in the banking book and the

fair value of interest rate-sensitive liabilities recorded in the banking book; interest rate-

sensitive assets and interest rate-sensitive liabilities are assets and liabilities whose fair value

varies according to changes in market interest rates.

(3) In a decree23


Slovenska shall give a precise definition of what is meant by a ‘sudden and unexpected

change in market interest rates’.

Article 33a


(a) ‘systemically important institution’ means an EU parent bank, an EU parent financial

holding company, an EU parent mixed financial holding company, or a bank the failure or

malfunction of which could lead to systemic risk;

(b) ‘global systemically important institution’ (G-SII) means a bank classified by Národná

banka Slovenska as systemically important under Article 33d(1) and (2), while a G-SII is

not a subsidiary of an EU parent bank, an EU parent financial holding company, or a EU

parent mixed financial holding company;

(c) ‘other systemically important institution’ (O-SII) means a bank classified by Národná

banka Slovenska as systemically important under Article 33d(1) and (3);

(d) ‘capital conservation buffer’ (hereinafter referred to as ‘buffer’) means the own funds that

a bank is required to maintain in accordance with Article 33b;

(e) ‘institution-specific countercyclical capital buffer’ means the own funds that a bank is

required to maintain in accordance with Article 33c;

30l


56

(f) ‘G-SII buffer’ means the own funds that are required to be maintained in accordance with

Article 33d(4);

(g) ‘O-SII buffer’ means the own funds that may be required to be maintained in accordance

with Article 33d(5);

(h) ‘systemic risk buffer’ means the own funds that a bank may or is required to maintain in

accordance with Article 33e;

(i) ‘combined buffer requirement’ means the total Common Equity Tier 1 capital as defined

in a separate regulation,30m

required to meet the requirement for the capital conservation

buffer extended in accordance with Article 33d(15) to(17) and Article 33e(4) and (5) by

the following, as applicable:

1. an institution-specific countercyclical capital buffer;

2. a G-SII buffer;

3. an O-SII buffer;

4. a systemic risk buffer;

(j) ‘countercyclical capital buffer rate’ means the rate that banks must apply in order to

calculate their institution-specific countercyclical capital buffer, and that is set in

accordance with Articles 33g and 33h or by a designated authority of a non-Member

State, as the case may be;

(k) ‘financial holding company’ means financial holding company as defined in a separate

regulation.30n

(l) ‘mixed-activity holding company’ means mixed-activity holding company as defined in

a separate regulation30o

.

(m) ‘parent bank’ means parent bank as defined in a separate regulation30p

.

(n) ‘parent financial holding company’ means parent financial holding company as defined in

a separate regulation30r

.

(o) ‘EU parent bank’ means EU parent bank as defined in a separate regulation30s

;

(p) ‘EU parent financial holding company’ means EU parent financial holding company as

defined in a separate regulation30t

;

(r) ‘designated authority of a Member State’ means a Member State’s authority responsible

for setting the countercyclical capital buffer rate for that Member State or for setting the

systemic risk buffer;

(s) ‘mixed financial holding company’ means a parent undertaking,30ta

other than a regulated

person, which together with its subsidiaries, at least one of which is a regulated person

having a registered office in a Member State, and together with other controlled persons,

constitutes a financial conglomerate;

(t) ‘parent mixed financial holding company’ means parent mixed financial holding

company as defined in a separate regulation30tb

;

(u) ‘EU parent mixed financial holding company’ means EU parent mixed financial holding

company as defined in a separate regulation30tc

.

Article 33b

30m

) Article 50 of Regulation (EU) No 575/2013. 30n

) Article 4(1) point 20 of Regulation (EU) No 575/2013. 30o

) Article 4(1) point 22 of Regulation (EU) No 575/2013. 30p

) Article 4(1) point 28 of Regulation (EU) No 575/2013. 30r

) Article 4(1) point 30 of Regulation (EU) No 575/2013. 30s

) Article 4(1) point 29 of Regulation (EU) No 575/2013. 30t

) Article 4(1) point 31 of Regulation (EU) No 575/2013. 30ta

) Article 4(1) point 21 of Regulation (EU) No 575/2013. 30tb

) Article 4(1) point 32 of Regulation (EU) No 575/2013. 30tc


57

(1) In addition to the Common Equity Tier 1 capital30m

maintained to meet the own

funds requirements imposed under a separate regulation,30u

banks shall also maintain a capital

conservation buffer of Common Equity Tier 1 capital30m

equal to 2.5% of their total risk

exposure amount calculated in accordance with a separate regulation30v

on an individual and

consolidated basis.

(2) Banks shall not use Common Equity 1 capital that is maintained to meet the

requirements referred to in paragraph 1 to meet the requirements imposed under Article 6,

those of a corrective measure imposed under Article 50, and the own funds requirements laid

down a separate regulation30u

.

(3) Where a bank fails to meet fully the requirements referred to in paragraph 1, it

shall be subject to the restrictions on distributions set out in Article 33k(2) and (3).

Article 33c

(1) Apart from meeting the requirements imposed under Article 33b(1), banks shall

also maintain an institution-specific countercyclical capital buffer of Common Equity Tier 1

capital30m

equal to their total risk exposure amount calculated according to a separate

regulation30v

, multiplied by the weighted average of the countercyclical capital buffer rates

calculated in accordance with Article 33j on an individual and consolidated basis under

a separate regulation.30w

(2) Banks shall not use Common Equity Tier 1 capital that is maintained to meet the

requirements mentioned in paragraph 1 to meet the requirements imposed under Article 6,

those of a corrective measure imposed under Article 50, the own funds requirements laid

down a separate regulation30u

, and the requirements imposed under Article 33b(1).

(3) Where a banks fails to meet fully the requirements referred to in paragraph 1, it

shall be subject to the restrictions on distributions set out in Article 33k(2) and (3).

Article 33d

(1) Národná banka Slovenska shall identify G-SIIs in accordance with paragraph 2 on

a consolidated basis and O-SIIs in accordance with paragraph 3 on an individual basis,

consolidated basis, or sub-consolidated basis.

(2) Národná banka Slovenska shall identify and allocate G-SIIs into the respective

subcategories according to the criteria defined in paragraph 11 and the overall score

calculated according to these criteria. The criteria have the same weight and are formed by

quantifiable indicators. The following criteria shall be used to identify and categorise G-SIIs:

(a) the size of the group;

(b) the links of the group to the financial system;

(c) the replaceability of the banking services provided by the group;

(d) the complexity of the group;

(e) the group’s cross-border activities, including cross-border activities between Member

States and between Member States and non-Member States.

30u

) Article 92 of Regulation (EU) No 575/2013. 30v

) Article 92(3) of Regulation (EU) No 575/2013. 30w


58

(3) Národná banka Slovenska shall identify O-SIIs according to at least one of the

following criteria:

(a) size;

(b) importance for the economy of the European Union as a whole or for the economy of the

Slovak Republic;

(c) significance of cross-border activities;

(d) links between the bank or group and the financial system.

(4) Apart from meeting the requirements imposed under Articles 33b(1) and 33c(1),

banks shall also maintain a G-SII buffer of Common Equity Tier 1 capital on a consolidated

basis, in an amount corresponding to the subcategory defined in paragraph 11, in which the G-

SII is included.

(5) Apart from meeting the requirements imposed under Articles 33b(1)and 33c(1),

banks shall also maintain an O-SII buffer on an individual, consolidated, or sub-consolidated

basis, in the form of Common Equity Tier 1 capital, the amount of which may be set by

Národná banka Slovenska up to 2% of the total risk exposure amount calculated in

accordance with a separate regulation30v

, according to the criteria set out in paragraph 3.

(6) G-SIIs shall not use Common Equity Tier 1 capital that is maintained to meet the

requirement set out in paragraph 4 and O-SIIs shall not use Common Equity Tier 1 capital

that is maintained to meet the requirement set out in paragraph 5 to meet the requirements

imposed under Article 6, the requirements of a remedial measure imposed under Article 50,

the own funds requirements laid down in a separate regulation30u

, and the requirements

imposed under Articles 33b(1) and 33c(1).

(7) Národná banka Slovenska shall require an O-SII buffer to be maintained in an

amount that will have no disproportionate adverse effects on the whole or parts of the

financial system of other Member States or of the Union as a whole, forming or creating an

obstacle to the functioning of the internal market. Národná banka Slovenska shall review the

O-SII buffer at least annually.

(8) Before setting or resetting an O-SII buffer, Národná banka Slovenska shall notify

the Commission, the European Systemic Risk Board, the European supervisory authority

(European Banking Authority), and the competent and designated authorities of the Member

States concerned one month before the publication of the decision referred to in paragraph 5.

The notification shall describe in detail:

(a) the justification why the O-SII buffer is considered likely to be effective and

proportionate to mitigate the risk;

(b) an assessment of the likely positive or negative impact of the O-SII buffer on the internal

market of the Slovak Republic;

(c) the O-SII buffer that will be required by Národná banka Slovenska to be maintained.

(9) Where an O-SII is a subsidiary of either a G-SII or an O-SII which is an EU parent

bank and is subject to an O-SII buffer on a consolidated basis, the buffer that applies at

individual or sub-consolidated level to the O-SII shall not exceed the higher of:

(a) 1% of the total risk exposure amount calculated in accordance with a separate

regulation30v

;

(b) the G-SII or O-SII buffer rate applicable to the group at consolidated level, whichever is

higher.

59

(10) Paragraph 9 is without prejudice to the provisions of paragraph 5 and

Article 33k.

(11) A G-SII shall be included in one of the six subcategories given below. The

lowest boundary and the boundaries between the individual subcategories shall be determined

by Národná banka Slovenska on the basis of the scores under the identification methodology.

A G-SII buffer shall be set as a percentage of the total risk exposure amount calculated

according to a separate regulation30v

, as follows:

(a) for subcategory 1: 1.0%;

(b) for subcategory 2: 1.5%;

(c) for subcategory 3: 2.0%;

(d) for subcategory 4: 2.5%;

(e) for subcategory 5: 3.0%;

(f) for subcategory 6: 3.5%.

(12) Without prejudice to paragraphs 1 to 11, Národná banka Slovenska may (a) re-

allocate a G-SII from a lower subcategory to a higher subcategory, (b) allocate a bank that has

an overall score that is lower than the cut-off score of subcategory 1 to subcategory 1 or to

a higher subcategory, thereby designating it as a G-SII.

(13) If Národná banka Slovenska takes a decision in accordance with paragraph 12(b),

it shall notify the European supervisory authority (European Banking Authority) accordingly,

providing reasons.

(14) Národná banka Slovenska shall report the list and names of G-SIIs and O-SIIs, as

well as the respective subcategory in which each G-SII is included, to the Commission, the

European Systemic Risk Board, and the European supervisory authority (European Banking

Authority), and shall disclose this information on its website. Národná banka Slovenska shall

review annually the identification of G-SIIs and O-SIIs, and the inclusion of G-SIIs in the

respective subcategories, and shall report the result to the G-SII or O-SII concerned, the

Commission, the European Systemic Risk Board, and the European supervisory authority

(European Banking Authority). The updated list of identified systemically important

institutions and the subcategories in which the identified G-SIIs are included shall be

published on the NBS website.

(15) If a bank on a consolidated basis is required to maintain:

(a) a G-SII buffer and an O-SII buffer at the same time, the higher of the two shall be

applicable;

(b) a G-SII buffer, an O-SII buffer, and a systemic risk buffer under Article 33e, the highest

of the three shall be applicable.

(16) If a bank on an individual or sub-consolidated basis is required to maintain an

O-SII buffer and a systemic risk buffer under Article 33e, it shall maintain the higher of the

two buffers.

(17) Where the systemic risk buffer only applies to exposures in the Slovak Republic,

it shall be cumulative with the G-SII buffer or the buffer relating to other systemically

important institutions (O-SIIs), while paragraphs 15(b) and 16 shall not apply.

(18) Where paragraph 16 applies and a bank is part of a group or a subgroup to which

a G-SII or an O-SII belongs, this shall never imply that that bank is, on an individual basis,

60

subject to a combined buffer requirement that is lower than the sum of the capital

conservation buffer, the countercyclical capital buffer, and the higher of the O-SII buffer and

systemic risk buffer applicable to it on an individual basis.

(19) Where paragraph 17 applies and a bank is part of a group or a subgroup to which

a G-SII or an O-SII belongs, this shall never imply that that bank is, on an individual basis,


conservation buffer, the countercyclical buffer, the O-SII buffer, and the systemic risk buffer

applicable to it on an individual basis.

Article 33e

(1) Národná banka Slovenska may introduce a systemic risk buffer of Common

Equity Tier 1 capital for banks, in order to prevent and mitigate long-term non-cyclical

systemic or macroprudential risks not covered by a separate regulation,30x

in the meaning of

a risk of disruption in the financial system with the potential to have serious negative

consequences for the financial sector and national economy of the Slovak Republic.

(2) Banks may be required to maintain, in addition to the Common Equity Tier 1

capital maintained to meet the own funds requirements imposed under a separate

regulation30u

, a systemic risk buffer of at least 1% of the risk exposure amount calculated

according to a separate regulation30v

, based on the exposures to which the systemic risk buffer

applies in accordance with paragraph 8, on an individual, consolidated, or sub-consolidated

basis, as applicable under a separate regulation30y

.

(3) Banks shall not use Common Equity Tier 1 capital that is maintained to meet the

requirements set out in paragraph 2 to meet any requirements imposed under Article 6, the

requirements of a corrective measure imposed under Article 50, the own funds requirements

laid down in a separate regulation30u

, and the requirements imposed under Articles 33b(1)

and 33c(1).

(4) Where a bank, on an individual, sub-consolidated or consolidated basis, is subject

to the requirement to maintain an O-SII buffer in accordance with Article 33d as well as

a systemic risk buffer, the higher of the two shall apply. Where a bank, on a consolidated

basis, is subject to the requirement to maintain:

(a) a G-SII buffer and a systemic risk buffer at the same time, the higher of the two shall

apply; or

(b) a G-SII buffer, an O-SII buffer in accordance with Article 33d, and a systemic risk buffer,

the highest of the three buffers shall apply.

(5) Where the systemic risk buffer only applies to exposures in the Slovak Republic, it

shall be cumulative with the O-SII buffer or the G-SII buffer which is applied in accordance

with Article 33d, while paragraph 4 shall not apply.

(6) Where paragraph 4 applies and a bank is part of a group or a subgroup to which a

G-SII or an O-SII belongs, this shall never imply that that bank is, on an individual basis,


30x

) Regulation (EU) No 575/2013. 30y


61

conservation buffer, the countercyclical capital buffer, and the higher of the O-SII buffer and

systemic risk buffer applicable to it on an individual basis.

(7) Where paragraph 5 applies and a bank is part of a group or a subgroup to which a

G-SII or an O-SII belongs, this shall never imply that that bank is, on an individual basis,


conservation buffer, the countercyclical capital buffer, the O-SII buffer, and the systemic risk

buffer applicable to it on an individual basis.

(8) A systemic risk buffer can be applied to exposures in the Slovak Republic, as well

as to exposures located in non-Member States. A systemic risk buffer can also be applied to

exposures in other Member States in accordance with paragraph 19.

(9) Národná banka Slovenska may set a systemic risk buffer in gradual steps of

adjustment of 0.5 percentage point. Národná banka Slovenska may set a systemic risk buffer

for banks on an individual basis.

(10) When requiring a systemic risk buffer to be maintained, Národná banka

Slovenska shall ensure that the systemic risk buffer exerts no disproportionate adverse effects

on the whole or parts of the financial system of other Member States or of the European

Union as a whole, forming or creating an obstacle to the functioning of the internal market of

the Union. Národná banka Slovenska shall review the systemic risk buffer at least every

second year.

(11) Before setting or resetting a systemic risk buffer rate of up to 3%, Národná banka

Slovenska shall notify the Commission, the European Systemic Risk Board, the European

supervisory authority (European Banking Authority), and the competent or designated

supervisory authorities of the Member States concerned one month before the publication of

the decision referred to in paragraph 16. Where the systemic risk buffer applies to exposures

located in a non-Member State, Národná banka Slovenska shall also notify the competent or

designated authority of that country. The notification shall describe in detail:

(a) the systemic or macroprudential risk faced by the Slovak Republic;

(b) the reasons why the degree of the systemic or macroprudential risk threatens the stability

of the financial system in the Slovak Republic, justifying the systemic risk buffer rate;

(c) the reasons why the systemic risk buffer is considered likely to be effective and

proportionate to mitigate these risks;

(d) the assessment of the likely positive or negative impact of the systemic buffer on the

internal market of the European Union;

(e) the reasons why none of the existing measures in this Act, except for the measures

referred to in Article 33m(f) to (h) or in a separate regulation30z

, will be sufficient to

address the identified macroprudential or systemic risk;

(f) the systemic risk buffer rate that Národná banka Slovenska wishes to require.

(12) Národná banka Slovenska shall,

(a) before setting or resetting a systemic risk buffer rate of above 3%, notify the Commission,

the European Systemic Risk Board, the European supervisory authority (European

Banking Authority), and the competent or designated supervisory authorities of the

Member States concerned. If the systemic risk buffer applies to exposures located in

30z

) Articles 1 to 457 and Articles 460 to 521 of Regulation (EU) No 575/2013.

62

a non-Member State, Národná banka Slovenska shall also notify the competent or

designated authority of that country. The notification shall describe in detail:

1. the systemic or macroprudential risk faced by the Slovak Republic;

2. the reasons why the degree of the systemic or macroprudential risk threatens the

stability of the financial system in the Slovak Republic, justifying the systemic risk

buffer rate;

3. the reasons why the systemic risk buffer is considered likely to be effective and

proportionate to mitigate these risks;

4. the assessment of the likely positive or negative impact of the systemic buffer on the

internal market of the European Union;

5. the reasons why none of the existing measures in this Act, except for the measures

referred to in Article 33m(f) to (h) or in a separate regulation30z

, will be sufficient to

address the identified macroprudential or systemic risk;

6. the systemic risk buffer rate that Národná banka Slovenska wishes to require.

(b) set or reset a systemic risk buffer rate in accordance with subparagraph (a) with the

approval of the Commission.

(13) Národná banka Slovenska may, from 1 January 2015, set or reset a systemic risk

buffer rate that applies to exposures located in the Slovak Republic, as well as to exposures in

non-Member States, of up to 5% or above 5%. When setting or resetting a systemic risk

buffer rate of up to 5%, Národná banka Slovenska shall follow the procedure set out in

paragraph 11. When setting or resetting a systemic risk buffer rate of above 5%, it shall

proceed in accordance with paragraph 12.

(14) Where the systemic risk buffer rate is to be set between 3% and 5% in accordance

with paragraph 13, Národná banka Slovenska shall always notify the Commission thereof and

shall await the opinion of the Commission before adopting the measures in question. If the

opinion of the Commission is negative, Národná banka Slovenska shall comply with that

opinion or give reasons for not so doing.

(15) Where a bank is a subsidiary whose parent is established in another Member

State, Národná banka Slovenska shall notify the competent supervisory authority of that

Member State, the Commission, and the European Systemic Risk Board of the facts referred

to in paragraph 14. The Commission and the European Systemic Risk Board shall issue

a recommendation on the measures taken in accordance with paragraph 14. If the competent

authority disagrees and both the Commission and the European Systemic Risk Board issues

a negative recommendation, Národná banka Slovenska may refer the matter to the European

supervisory authority (European Banking Authority) and request its assistance under


. The systemic risk buffer rate shall be set in accordance with the

decision of the European supervisory authority (European Banking Authority).

(16) Národná banka Slovenska shall announce the setting of a systemic risk buffer by

publication on its website. The announcement shall include at least the following information:

(a) the applicable systemic risk buffer rate;

(b) the banks to which the systemic risk buffer applies;

(c) a justification for the systemic risk buffer;

(d) the date from which the banks must apply the systemic risk buffer set or reset;

(e) the names of the countries where exposures located in those countries are recognised in

the systemic risk buffer.

63

(17) Where publication as referred to in paragraph 16(c) could jeopardise the stability

of the financial system, the information specified in paragraph 16(c) shall not be included in

the announcement.

(18) Where a bank fails to meet fully the requirement under paragraph 1, it shall be

subject to the restrictions on distributions set out in Article 33k(2) and (3). If the application

of those restrictions on distributions leads to an unsatisfactory improvement in the Common

Equity Tier 1 capital of the bank in the light of the relevant systemic risk, Národná banka Slovenska may take additional measures in accordance with Articles 50 and 63.

(19) Following notification as referred to in paragraph 11, Národná banka Slovenska

may apply the systemic risk buffer to all exposures. If Národná banka Slovenska decides to

set the buffer rate up to 3% on the basis of exposures in other Member States, the buffer shall

be set equally for all exposures located within the European Union.

Article 33f

(1) Národná banka Slovenska may recognise a systemic risk buffer rate set in

accordance with Article 33e and may apply that buffer rate to domestically authorised banks

for exposures located in the Member State whose competent or designated supervisory

authority sets that buffer rate.

(2) If Národná banka Slovenska recognises the systemic risk buffer rate mentioned in

paragraph 1 for banks, it shall notify the Commission, the European Systemic Risk Board, the

European supervisory authority (European Banking Authority), and the competent or

designated supervisory authority referred to in paragraph 1.

(3) When deciding whether to recognise a systemic risk buffer rate, Národná banka

Slovenska shall take into consideration the information provided by the Member State that

sets that buffer rate in accordance with Article 33e(11),(12) or (13).

(4) When setting a systemic risk buffer rate in accordance with Article 33e, Národná

banka Slovenska may ask the European Systemic Risk Board to issue a recommendation as

referred to in a separate regulation30za

to one or more Member States which may recognise the

systemic risk buffer rate, to recognise the buffer rate in question.

Article 33g

(1) Národná banka Slovenska shall assess and set an appropriate countercyclical buffer

rate on a quarterly basis, and in so doing shall take into account:

(a) the buffer guide calculated in accordance with paragraph 2 as a reference for setting the

countercyclical buffer rate;

(b) any current guidance and recommendations issued by the European Systemic Risk Board

on the setting of a buffer rate;

(c) other variables that Národná banka Slovenska considers relevant for addressing cyclical

systemic risk.

(2) Národná banka Slovenska shall calculate for every quarter a buffer guide as

a reference for setting the countercyclical buffer rate. In assessing the buffer guide, Národná

30za


64

banka Slovenska shall duly take into account the specificities of the Slovak economy with

regard to:

(a) the indicator of credit growth and the risks involved, and, in particular, the changes in the

ratio of credit granted to gross domestic product;

(b) any current guidance issued by the European Systemic Risk Board on systemic risks.

(3) Národná banka Slovenska shall set a countercyclical capital buffer rate, expressed

as a percentage of the total risk exposure amount calculated in accordance with a separate

regulation30v

, between 0% and 2.5%, calibrated in steps of 0.25 percentage point or multiples

of 0.25 percentage point. Where justified on the basis of the considerations set out in

paragraph 2, Národná banka Slovenska may set a countercyclical capital buffer rate in excess

of 2.5% of the total risk exposure amount calculated in accordance with a separate

regulation30v

for the purposes set out in Article 33j(2).

(4) If Národná banka Slovenska sets the countercyclical buffer rate above zero for the

first time or increases the prevailing countercyclical buffer rate setting, Národná banka

Slovenska shall also set the date from which the banks must use that increased buffer rate for

calculating their institution-specific countercyclical capital buffer. That date may be earlier

than 12 calendar months after the date of announcement of the increased buffer rate only

under exceptional circumstances.

(5) If Národná banka Slovenska reduces the existing countercyclical buffer rate, it

shall also decide an indicative period during which no increase in the buffer rate is expected.

(6) Národná banka Slovenska shall announce the quarterly setting of the counter-

cyclical buffer rate to the European Systemic Risk Board by publication on its website. The

announcement shall include at least the following information:

(a) the applicable countercyclical buffer rate;

(b) the relevant credit-to-GDP ratio and its deviation from the long-term trend;

(c) the buffer guide calculated in accordance with paragraph 2;

(d) a justification for the buffer rate setting;

(e) where the buffer rate is increased, the date from which the banks must use that increased

buffer rate for calculating their bank-specific countercyclical capital buffer;

(f) where the date referred to in subparagraph (e) is less than 12 months after the date of

announcement under this paragraph, a justification for the shorter deadline;

(g) where the buffer rate is decreased, the indicative period during which no increase in the

buffer rate is expected, together with a justification for that period.

Article 33h

(1) Where a designated authority of a Member State or of a non-Member State sets

a countercyclical buffer rate in excess of 2.5% of the total risk exposure amount calculated in


, Národná banka Slovenska may recognise that buffer

rate for the calculation by domestically authorised banks of their institution-specific

countercyclical capital buffer.

(2) Where Národná banka Slovenska in accordance with paragraph 1 recognises

a buffer rate higher than 2.5% of the total risk exposure amount calculated under a separate

regulation30v

, it shall announce that recognition by publication on its website. The

announcement shall include at least the following information:


65

(b) the Member State or non-Member State to which it applies;

(c) where the buffer rate is increased, the date from which banks must use the increased

buffer rate for calculating their institution-specific countercyclical capital buffer;

(d) where the date referred to in subparagraph (c) is less than 12 months after the date of

announcement under this paragraph, a justification for the shorter deadline.

Article 33i

(1) Where the designated authority of a non-Member State fails to set a counter-

cyclical capital buffer rate for that country, Národná banka Slovenska may set a counter-

cyclical buffer rate for banks for the calculation of their institution-specific countercyclical

capital buffer.

(2) Where the designated authority of a non-Member State has set a countercyclical

buffer rate for that country but Národná banka Slovenska has justified doubts whether the

countercyclical buffer rate set by that authority is sufficient to ensure adequate protection for

banks against the risk of excessive credit growth in that country, Národná banka Slovenska

may set a different countercyclical buffer rate for banks in that country for the calculation of

their institution-specific countercyclical capital buffer. The countercyclical buffer rate set by

Národná banka Slovenska may not be lower than the figure set by the designated authority of

that country, except for cases where the countercyclical buffer rate is higher than 2.5% of the

total risk exposure amount calculated in accordance with a separate regulation30v

for banks

that have credit exposures in that country.

(3) The setting of a countercyclical buffer rate under paragraph 1 or 2, above the

existing countercyclical buffer rate set by the authority of that country, shall also contain the

date from which banks are required to use that buffer rate for the calculation of their

institution-specific countercyclical capital buffer. The date from which banks are required to

use the increased countercyclical buffer rate shall be maximum 12 calendar months from the

date of the announced increase in the buffer rate in accordance with paragraph 4.

(4) Národná banka Slovenska shall announce the setting of a countercyclical capital

buffer rate in accordance with paragraph 1 or 2 on its website. The announcement shall

include at least the following information:


(b) the non-Member State to which it applies;

(c) a justification for the countercyclical buffer rate set;

(d) the date from which banks must use that increased buffer rate for the calculation of their

institution-specific countercyclical capital buffer, where the countercyclical buffer rate is

higher than zero for the first time or is being increased;

(e) a justification for reducing the time limit, where the date referred to in subparagraph (d) is

less than 12 calendar months after the date of announcement.

Article 33j

(1) The institution-specific countercyclical capital buffer rate shall be calculated as

a weighted average of the countercyclical buffer rates that apply in the countries where the

relevant credit exposures of the bank are located or are applied for the purposes of Article

33i(1) or (2). In order to calculate the weighted average mentioned in the first sentence, banks

shall apply to each applicable countercyclical buffer rate their total own funds requirements

66

for credit risk, determined in accordance with a separate regulation,30zb

that relates to the

relevant credit exposures in the territory in question, divided by their total own funds

requirements for credit risk that relates to all of their relevant credit exposures.

(2) Where the competent supervisory authority of a Member State sets a counter-

cyclical capital buffer rate in excess of 2.5% of the total risk exposure amount calculated in


, the following buffer rates shall apply to the relevant

credit exposures located in that Member State for the purpose of calculating the counter-

cyclical capital buffer in accordance with paragraph 1:

(a) a countercyclical buffer rate of 2.5% of the total risk exposure amount where Národná

banka Slovenska has not recognised a countercyclical buffer rate exceeding 2.5% under

Article 33h(l);

(b) the countercyclical buffer rate set by a designated authority of that Member State where

Národná banka Slovenska has recognised a countercyclical buffer rate exceeding 2.5%

under Article 33h.

(3) Where the competent authority of a non-Member State sets a countercyclical

capital buffer rate in excess of 2.5% of the total risk exposure amount calculated in


, the following buffer rates shall apply to the relevant

credit risk exposures located in that country for the purpose of calculating the countercyclical

capital buffer in accordance with paragraph 1:

(a) a countercyclical buffer rate of 2.5% of the total risk exposure amount where Národná

banka Slovenska has not recognised a countercyclical capital buffer rate exceeding 2.5%

under Article 33h(l);

(b) the countercyclical buffer rate set by a designated authority of that country where

Národná banka Slovenska has recognised a countercyclical buffer rate exceeding 2.5%

under Article 33h;

(4) Relevant credit risk exposures shall include all those exposure classes, other than

those referred to in a separate regulation30zc

, that are subject to:

(a) the own funds requirements for credit risk under a separate regulation30zb

;

(b) where the exposure is held in the trading book, the own funds requirements for specific

risk under a separate regulation30zd

or for incremental default and migration risk under

a separate regulation;30ze

(c) where the exposure is a securitisation, the own funds requirements under a separate

regulation.30zf

(5) Banks shall identify the geographical location of a relevant credit risk exposure in

accordance with the applicable Commission directives on the issuance of regulatory technical

standards.30zg

(6) For the purpose of calculating the countercyclical capital buffer in accordance

with paragraph 1:

30zb

) Articles 107 to 311 of Regulation (EU) No 575/2013. 30zc

) Articles 112(a) to (f) of Regulation (EU) No 575/2013. 30zd

) Articles 326 to 350 of Regulation (EU) No 575/2013. 30ze

) Articles 362 to 377 of Regulation (EU) No 575/2013. 30zf

) Articles 242 to 270 of Regulation (EU) No 575/2013. 30zg


67

(a) a countercyclical buffer rate for a Member State shall apply from the date specified in the

information published in accordance with Article 33g(6)(e) or Article 33h(2)(c) if the

effect of that decision is to increase the buffer rate;

(b) except for the case mentioned in subparagraph (c), a countercyclical buffer rate for a non-

Member State shall apply 12 months after the date on which a change in the buffer rate

was announced by the competent authority of that country, irrespective of whether that

authority requires the banks established in that country to apply the change within

a shorter period, if the effect of that decision is to increase the buffer rate;

(c) where Národná banka Slovenska sets a countercyclical buffer rate for a non-Member

State under Article 33i(1) or (2), or recognises a countercyclical buffer rate for that

country under Article 33h, that buffer rate shall apply from the date specified in the

information published in accordance with Article 33i(4)(d) or Article 33h(2)(c), if the

effect of that decision is to increase the buffer rate;

(d) a countercyclical buffer rate shall apply immediately if the effect of the decision of

Národná banka Slovenska is to reduce the buffer rate.

(7) For the purposes of paragraph 6(b), a change in the countercyclical buffer rate for

a non-Member State shall be considered to be announced on the date when it is published by

the competent authority of that country in accordance with the applicable national rules.

Article 33k

(1) Banks that meet the combined buffer requirement shall be prohibited from making

a distribution in connection with Common Equity Tier 1 capital to an extent that would

decrease their Common Equity Tier 1 capital to a level where the combined buffer

requirement is no longer met.

(2) Banks that fail to meet the combined buffer requirement shall be required to

calculate the maximum distributable amount (‘MDA’) in accordance with paragraph 4 and to

notify Národná banka Slovenska of that MDA. Such banks shall be prohibited from

undertaking any of the following actions before they have calculated the MDA:

(a) make a distribution in connection with Common Equity Tier 1 capital;

(b) create an obligation to pay variable remuneration or discretionary pension benefits or pay

variable remuneration if the obligation to pay was created at a time when the bank failed

to meet the combined buffer requirement;

(c) make payments on additional Tier 1 instruments.

(3) While a bank fails to meet or exceed the combined buffer requirement, it shall be

prohibited from distributing more than the MDA calculated in accordance with paragraph 4,

through any action referred to in subparagraphs (a), (b), and (c) of paragraph 2. If the bank

carries out any of these actions, the MDA shall be reduced.

(4) Banks shall calculate the MDA by multiplying the sum calculated in accordance

with paragraph 5 by the factor determined in accordance with paragraph 6.

(5) The sum to be multiplied in accordance with paragraph 4 shall consist of the

interim profits not included in Common Equity Tier 1 capital under a separate regulation30zh

that have been generated since the most recent decision on the distribution of profits or any of

the actions referred to in paragraph 2, plus the year-end profits not included in Common

30zh


68

Equity Tier 1 capital under a separate regulation30zh

that have been generated since the most

recent decision on the distribution of profits or any of the actions referred to in paragraph 2,

minus the amounts which would be payable in the form of tax if the items specified in this

paragraph were to be retained.

(6) The factor shall be determined as follows:

(a) where the Common Equity Tier 1 capital maintained by the bank but not used to meet the

own funds requirement under a separate regulation,30zi

expressed as a percentage of the


, is

within the first (that is, the lowest) quartile of the combined buffer requirement, the

factor shall be 0;

(b) where the Common Equity Tier 1 capital maintained by the bank but not used to meet the

own funds requirement under a separate regulation30zi

, expressed as a percentage of the


, is

within the second quartile of the combined buffer requirement, the factor shall be 0.2;

(c) where the Common Equity Tier 1 capital maintained by the bank but not used to meet the




; is

within the third quartile of the combined buffer requirement, the factor shall be 0.4;

(d) where the Common Equity Tier 1 capital maintained by the bank but not used to meet the




, is

within the fourth (that is, the highest) quartile of the combined buffer requirement, the

factor shall be 0.6.

(7) The lower bound of the quartile of the combined buffer requirement shall be

calculated as follows:

Combined buffer requirement

Lower bound of quartile = --------------------------------------- x (Q n – 1)

4

"Q n" indicates the ordinal number of the quartile concerned.

(8) The upper bound of the quartile of the combined buffer requirement shall be

calculated as follows:

Combined buffer requirement

Upper bound of quartile = --------------------------------------- x Q n

4

"Q n" indicates the ordinal number of the quartile concerned.

(9) For the purposes of paragraphs 1 and 2, a distribution in connection with Common

Equity Tier 1 capital shall include the following:

(a) a payment of cash dividends;

(b) a distribution of fully or partly paid bonus shares or other capital instruments referred to

in a separate regulation;30zj

(c) a redemption or purchase by a bank of its own shares or other capital instruments referred

to in a separate regulation30zj

;

30zi

) Article 92(1)(c) of Regulation (EU) No 575/2013. 30zj

) Article 26(1)(a) of Regulation (EU) No 575/2013.

69

(d) a repayment of amounts paid up in connection with capital instruments referred to in

a separate regulation30zj

;

(e) a distribution of items referred to in a separate regulation.30zk

(10) Where a bank fails to meet the combined buffer requirement and intends to

distribute any of its distributable profits or undertake an action referred to in paragraph 2, it

shall notify Národná banka Slovenska and provide the following information:

(a) the amount of capital maintained by the bank, subdivided as follows:

1. Common Equity Tier 1 capital;

2. additional Tier 1 capital;

3. Tier 2 capital;

(b) the amount of the bank‘s interim and year-end profits;

(c) the maximum distributable amount calculated in accordance with paragraph 4;

(d) the amount of distributable profits the bank intends to allocate between the following:

1. dividend payments;

2. share buy-backs;

3. payments in connection with additional Tier 1 instruments;

4. the payment of variable remuneration or discretionary pension benefits, whether by

creation of a new obligation to pay, or payment under an obligation to pay created at

a time when the bank failed to meet its combined buffer requirement.

(11) Banks shall maintain arrangements to ensure that the amount of distributable

profits and the maximum distributable amount are calculated accurately, and shall be able to

demonstrate that accuracy to Národná banka Slovenska on request.

(12) The restrictions imposed under paragraphs 1 to 11 of this Article shall only apply

to payments that result in a reduction of Common Equity Tier 1 capital or in a reduction of

profits, and where a suspension of payments or failure to pay does not constitute an event of

default or a condition for the commencement of proceedings under the insolvency regime

applicable to banks.

Article 33l

(1) Where a bank fails to meet the combined buffer requirement, it shall prepare

a capital conservation plan and submit it to Národná banka Slovenska no later than five

working days after it identified that it was failing to meet that requirement, unless Národná

banka Slovenska authorises a longer delay up to five working days.

(2) The capital conservation plan shall include the following:

(a) estimates of income and expenditure and a balance sheet forecast;

(b) measures to increase the capital ratios of the bank;

(c) a plan and timeframe for the increase of own funds with the objective of meeting fully the

combined buffer requirement;

(d) any other information that Národná banka Slovenska considers to be necessary to

carry out an assessment as required under paragraph 3.

(3) Národná banka Slovenska shall assess the capital conservation plan, and shall

approve the plan only if it considers that the plan, if implemented, would be reasonably likely

30zk

) Article 26(1)(b) to (e) of Regulation (EU) No 575/2013.

70

to conserve or raise sufficient capital to enable the bank to meet the combined buffer

requirement within a period which Národná banka Slovenska considers appropriate.

(4) If Národná banka Slovenska does not approve the capital conservation plan in

accordance with paragraph 3, it shall impose one or all of the following:

(a) require the bank to increase its own funds to a specified level within a specified period;

(b) exercise its powers to impose more stringent restrictions on distributions than those

required by Article 33k;

(c) apply the requirement set out in subparagraph (a), as well as the restriction imposed under

subparagraph (b).

Article 33m

Národná banka Slovenska shall:

(a) assign a preferential risk weight in the range of 35% to 150% to loans fully secured by

residential real property in accordance with a separate regulation;30zl

(b) assign a preferential risk weight in the range of 50% to 150% to any part of an exposure

secured by mortgage on commercial real property, not exceeding 50% of the market

value of the property or 60% of the mortgage value of the property in accordance with

a separate regulation30zl

;

(c) set more stringent criteria for that part of an exposure that is treated as fully secured by

residential real property in accordance with a separate regulation;30zm

(d) set more stringent criteria for that part of an exposure that is treated as fully secured by

commercial real property in accordance with a separate regulation;30zn

(e) set the minimum value of exposure-weighted average loss given default, using the

internal ratings-based approach for loans secured by residential real property or for loans

secured by commercial real property under a separate regulation;30zo

(f) set stricter requirements for own funds, large exposures, publication, the capital

conservation buffer as defined in Article 33b, liquidity, risk weights for residential or

commercial real property, and exposures within the financial sector in accordance with

a separate regulation;30zp

(g) recognise the measures of another Member State under a separate regulation;30zr

(h) set stricter requirements for large exposures, risk weights for residential or commercial

real property, and exposures within the financial sector under a separate regulation.30zs

Article 33n

Decisions taken by Národná banka Slovenska under Articles 33d to 33j and 33m are

not subject to the provisions of this Act pertaining to proceedings before Národná banka

Slovenska, the provisions of a separate law89

, nor to the general regulations governing

administrative proceedings30zt

. A decision of Národná banka Slovenska shall become effective

and enforceable on the date of its promulgation in the Official Journal of Národná banka

30zl

) Article 124(2) of Regulation (EU) No 575/2013. 30zm

) Article 125(2)(d) of Regulation (EU) No 575/2013. 30zn

) Article 126(2)(d) of Regulation (EU) No 575/2013. 30zo

) Article 164(5) of Regulation (EU) No 575/2013. 30zp

) Article 458(2)(d) of Regulation (EU) No 575/2013. 30zr

) Article 458(5) of Regulation (EU) No 575/2013. 30zs

) Article 458(10) of Regulation (EU) No 575/2013. 30zt

) Act No 71/1967 Coll., as amended.

Article 9 of Act No 266/2005 Coll. and Article 27 of Act No 250/2007 Coll., as amended.

71

Slovenska.30zu

Such decision may not be appealed, nor reviewed by any administrative

court.30zv

Article 33o

(1) Banks that are not subject to supervision on a consolidated basis and banks

constituting a significance part of the financial system shall draw up, regularly update and

observe a recovery plan as part of the bank’s governance system. A bank constitutes a

significant part of the financial system if:

(a) the total value of its assets exceeds EUR 30,000,000,000; or

(b) the ratio of its total assets to the Slovak Republic’s gross domestic product exceeds 20%,

unless the total value of its assets is below EUR 5,000,000,000.

(2) A recovery plan must include at least the following elements:

(a) a summary of the main parts of the recovery plan, including its total recovery capacity;

for the purposes of this Act, ‘recovery capacity’ means the capacity of a bank to restore

its financial position subsequent to a marked deterioration;

(b) a summary of the major changes made at the bank since the submission of the most recent

recovery plan to Národná banka Slovenska;

(c) a communication and information disclosure plan outlining how the bank intends to

manage any potentially negative market reaction;

(d) the range of capital and liquidity actions required to maintain or restore the bank’s

financial position and viability;

(e) an estimate of the timeframe for executing the crucial aspects of the recovery plan;

(f) a detailed description of any material impediment to the effective and timely execution of

the recovery plan, including an assessment of the impact on the other members of the

group, clients and counterparties;

(g) identification of the bank’s critical functions;

(h) a detailed description of the procedures to be followed in determining the value and

marketability or convertibility of a bank’s assets and core business lines;

(i) a detailed description of how recovery planning is integrated into the bank’s corporate

governance structure, the policies and procedures governing the approval of a recovery

plan, and identification of the persons responsible for preparing and implementing the

bank’s recovery plan;

(j) arrangements and measures designed to conserve and restore the bank’s own funds;

(k) arrangements and measures to ensure that the bank has adequate access to contingency

funding sources to ensure that it can carry on its operations and meet its obligations as

they fall due, in particular an assessment of the following:

1. potential liquidity sources;

2. available collateral;

3. possibility to transfer liquidity across group entities and business lines;

(l) arrangements and measures to reduce risk and leverage;

(m) arrangements and measures to restructure the bank’s liabilities;

30zu

) Article 44 of Act No 566/1992 Coll. of the National Council of the Slovak Republic, as amended. 30zv

) Article 7(h) of the Administrative Court Procedure Code.

72

(n) arrangements and measures to restructure the bank’s business lines;

(o) arrangements and measures necessary to maintain continuous access to financial market

infrastructures;

(p) measures needed to maintain the smooth functioning of the bank’s operational processes,

including its infrastructure and information technology;

(q) preparatory arrangements to facilitate the sale of assets or business lines in a timeframe

appropriate for the restoration of the bank’s financial soundness;

(r) other management actions or strategies to restore the bank’s financial soundness and the

anticipated financial effect of those actions or strategies;

(s) preparatory measures that the bank has taken or plans to take in order to facilitate the

implementation of the recovery plan, including those necessary to enable the timely

recapitalisation of the bank;

(t) a framework of indicators identifying the points at which appropriate actions as referred

to in the recovery plan may be taken; these indicators may be of a qualitative or

quantitative nature relating to the bank’s financial position and shall be capable of being

monitored by the bank easily;

(u) the measures the bank is prepared to take if the conditions set out in Article 65a are met;

(v) an analysis of how and when the bank could, if the circumstances set out in the recovery

plan so require, gain access to the liquidity-providing operations of the central bank and

determine its assets that could be used as security for such operations.

(3) Banks shall monitor the indicators referred to in paragraph 2(t) on a regular basis.

The statutory body of a bank may, where it considers it appropriate, decide to:

(a) take an action in accordance with the recovery plan even if the relevant indicator has not

been achieved;

(b) refuse to take an action in accordance with the recovery plan even if the relevant indicator

has been achieved.

(4) A decision taken by a bank pursuant to paragraph 3, backed by adequate

justification, shall be reported to Národná banka Slovenska without delay.

(5) A recovery plan shall not contain any measure designed to gain access to

extraordinary public financial support.

(6) A recovery plan must contain appropriate procedures for ensuring the timely

application of the individual measures and devising all possible methods for bank recovery.

The measures must take into account all possible scenarios of macroeconomic and financial

stress situations to which the bank may be exposed in view of the nature of banking activities

performed, including systemic stress situations and stress situations concerning a specific

legal person or a group of legal persons.

(7) A recovery plan is to be approved by the statutory body of the bank concerned and

then submitted to Národná banka Slovenska for assessment.

(8) Banks shall update their recovery plan at least once a year and after any change in

their organisational structure, business line or financial position, which could have a material

impact on the measures proposed in the recovery plan; in so doing, banks shall proceed in

accordance with paragraph 7. Národná banka Slovenska may require banks to update their

recovery plan more frequently than once a year.

73

Article 33p

(1) Banks shall submit their recovery plan to Národná banka Slovenska for assessment

within five working days of its approval in accordance with Article 33o(7). Národná banka

Slovenska shall assess whether

(a) the recovery plan contains all the elements listed in Article 33o(2) and (6);

(b) the implementation of the measures proposed in the recovery plan is reasonably likely to

maintain or restore the financial stability and viability of the bank or of the group it is part

of, taking into account the preparatory measures the bank has taken or is planning to take

to facilitate the implementation of its recovery plan;

(c) the recovery plan is reasonably likely to be implemented quickly and effectively in

situations of financial stress, avoiding to the maximum extent any possible significant

adverse effect on the financial system, including in scenarios which would lead other

banks to implement their recovery plan in the same period.

(2) In assessing a recovery plan, Národná banka Slovenska shall also take into

account the adequacy of the bank’s capital structure and financing in relation to its

organisational structure and risk profile.

(3) Národná banka Slovenska shall take an official position on a bank’s recovery plan

within six months of its submission pursuant to paragraph 1. If the bank concerned has a

significant branch established in another Member State and the recovery plan contains

measures relating to this branch, Národná banka Slovenska shall express its opinion on the

recovery plan after consulting the competent supervisory authority of the Member State in

which the significant branch is located.

(4) Národná banka Slovenska shall, within five working days of the submission of

a recovery plan pursuant to paragraph 1, forward the plan to the Resolution Council30zx

(hereinafter ‘the Council’) for review. If the Council finds that the recovery plan contains

measures that may adversely affect the bank’s resolvability, it shall notify Národná banka

Slovenska of this fact. The Council’s notification shall be a recommendation in nature.

(5) If Národná banka Slovenska finds that a bank’s recovery plan does not meet the

conditions set out in paragraph 1, it shall request that bank to take an official position on the

deficiencies identified in the recovery plan within the time limit set by Národná banka

Slovenska. After the bank clarifies its position, Národná banka Slovenska shall require that

the deficiencies be eliminated within two months. At the bank’s request, Národná banka

Slovenska may extend the time limit for the elimination of the said deficiencies by up to one

month.

(6) If a bank fails to eliminate the deficiencies mentioned in paragraph 5, Národná

banka Slovenska may instruct the bank to make specific changes in its recovery plan.

(7) If a bank fails to submit a recovery plan to Národná banka Slovenska within the

time limit specified in paragraph 5 or submits a recovery plan in which the deficiencies have

not been eliminated despite a request made under paragraph 6, Národná banka Slovenska

shall instruct the bank to propose changes in its operations with a view to eliminating the

deficiencies in the recovery plan.

30zx

) Article 3(1) of Act No 371/2014 Coll. on resolution in the financial market (and amending certain laws).

74

(8) If a bank fails to propose changes pursuant to paragraph 7 or Národná banka

Slovenska assesses that the changes proposed will not lead to the elimination of deficiencies

in the bank’s recovery plan, Národná banka Slovenska may impose the following measures

and obligations on that bank pursuant to Article 50:

(a) to reduce the bank’s risk profile and liquidity risk;

(b) to create conditions for the timely adoption of recapitalisation measures;

(c) to modify the bank’s strategy and structure;

(d) to modify the bank’s financial strategy with a view to improving the resilience of the

bank’s core business lines and critical functions; for the purposes of this Act, ‘core

business lines’ means the lines of business that represent a material source of revenue,

profit or franchise value for the bank or for the group to which the bank belongs; ‘critical

functions’ means the activities, services or operations performed or provided by the bank,

the discontinuance of which is likely to disrupt the functioning of the real economy or its

financial stability owing to the size of the bank or of the group, its market share, external

and internal links, complexity and range of cross-border activities, and the irreplaceability

of these activities, services and operations;

(e) to modify the bank’s management system.

(9) The imposition of measures and obligations under paragraph 8 are subject to the

relevant provisions of a separate regulation89

.

Article 33q

(1) Banks that are group-level parent undertakings30zy

shall draw up and submit to

Národná banka Slovenska a recovery plan for the group (hereinafter ‘group recovery plan’).

Such group recovery plan is to be approved by the bank’s statutory body. The group recovery

plan shall be submitted to Národná banka Slovenska for comments within the time limit

specified in Article 33p(1).

(2) Národná banka Slovenska shall submit a group recovery plan to:

(a) other Member State’s competent supervisory authority responsible for supervision of a

banking subsidiary which is a foreign bank, as well as to the College;

(b) the competent supervisory authority of each Member State in which a significant branch

of a bank is located if the group recovery plan contains measures relating to that branch;

(c) the Resolution Council;

(d) the resolution authorities responsible for the resolution of banking subsidiaries pursuant

to a separate regulation.30zz

(3) A group recovery plan is designed to set out the measures to be taken by a bank

that is a parent undertaking and by the group members. The purpose of a group recovery plan

is to stabilise the group as a whole or the bank’s subsidiaries in a stress situation, to resolve or

eliminate the causes of the stress situation, and to restore the financial position of the group as

a whole or of its members, with regard to the financial positions of the other members of the

group.

30zy

) Article 2(f) of Act No 371/2014 Coll., as amended by Act No 39/2015 Coll. 30zz

) Article 2(j) of Act No 371/2014 Coll.

75

(4) A group recovery plan shall contain the elements specified in Article 33o(2) and

(6) in relation to the group and the individual subsidiaries, as well as a group financial support

agreement if such agreement has been concluded.

(5) A group recovery plan shall specify for each scenario of severe macroeconomic

and financial stress whether there are any impediments to the implementation of measures

within the group as well as at the level of individual group entities to which the recovery plan

applies, and whether there are material practical or legal impediments to the prompt transfer

of own funds or repayment of liabilities or claims within the group.

Article 33r

(1) Národná banka Slovenska as a supervisory authority responsible for exercising

supervision on a consolidated basis shall, jointly with the competent supervisory authorities of

non-resident banking subsidiaries and after consulting the supervisory authorities of significant

branches, make every effort to reach a joint decision within four months of the submission of

a group recovery plan pursuant to Article 33q(2) in respect of:

(a) the approval of the group recovery plan submitted;

(b) the requirement that an individual recovery plan be drawn up by a subsidiary;

(c) the procedure to be followed in accordance with Article 33p(5);

(d) the procedure to be followed in accordance with Article 33p(6);

(e) the procedure to be followed in accordance with Article 33p(7);

(f) the imposition of a measure in accordance with Article 33p(8).

(2) The assessment of a group recovery plan is equally subject to the provisions of

Article 33p. Národná banka Slovenska shall, working closely with the competent supervisory

authorities of non-resident banking subsidiaries, assess the impact of the recovery measures

proposed in the recovery plan on financial stability in the Member States where the parent

undertaking and its subsidiaries are established.

(3) If, within the period specified in paragraph 1, any of the supervisory authorities

mentioned in paragraph 1 requests assistance from the European supervisory authority

(European Banking Authority) to reach an agreement in any of the matters referred to in

paragraph 1(a) and in Article 33p(8)(a), (b) and (d) pursuant to a separate regulation30zza

,

Národná banka Slovenska shall await the relevant decision of the European supervisory

authority (European Banking Authority) by which Národná banka Slovenska is bound. If the

European supervisory authority (European Banking Authority) fails to issue such decision

within one month of the delivery date of the request for assistance or if none of the

supervisory authorities mentioned in paragraph 1 has requested assistance from the European

supervisory authority (European Banking Authority) to reach an agreement and Národná

banka Slovenska fails to reach a joint decision with the supervisory authorities mentioned in

paragraph 1, Národná banka Slovenska shall issue a decision on its own, taking into account

the opinions of the supervisory authorities referred to in paragraph 1. Národná banka

Slovenska shall deliver its decision to the supervisory authorities mentioned in paragraph 1, as

well as to the bank concerned.

(4) If, within the period specified in paragraph 1, Národná banka Slovenska fails to

reach a joint decision with the supervisory authorities mentioned in paragraph 1 in any of the

matters referred to in paragraph 1(b) to (f) in relation to a bank as a parent undertaking and its

subsidiaries, Národná banka Slovenska shall take a decision in these matters only in respect of

30zza

) Article 19 of Regulation (EU) No 1093/2010, as amended.

76

the parent undertaking. Before the expiry of the period defined in paragraph 1, Národná banka

Slovenska may request assistance from the European supervisory authority (European

Banking Authority) to reach an agreement in any of the matters referred to in paragraph 1(a)

and in Article 33p(8), (a), (b) and (d) pursuant to a separate regulation19

. If Národná banka

Slovenska proceeds according to the second sentence, it shall await the decision of the

European supervisory authority (European Banking Authority). If the European supervisory

authority (European Banking Authority) fails to issue such decision within one month of the

delivery date of the request for assistance, Národná banka Slovenska shall take a decision on

its own.

(5) Where Národná banka Slovenska exercises supervision over a banking subsidiary

that is part of a group, it will be equally subject to the provisions of paragraphs 1 and 2. In

examining the group’s recovery plan, Národná banka Slovenska shall assess compliance with

the relevant requirements in accordance with Article 33o(2) and (6) in the range specified in

the group recovery plan, taking into account the effects the recovery measures proposed in the

group recovery plan may have on financial stability.

(6) Národná banka Slovenska may request assistance from the European supervisory

authority (European Banking Authority) in any of the matters referred to in Article 33p(8)(a),

(b) and (d) under a separate regulation19

and, if the European supervisory authority (European

Banking Authority issues a decision under a separate regulation19

, Národná banka Slovenska

will be bound by that decision. If a joint decision is not reached within the time limit specified

in paragraph 1, Národná banka Slovenska may take its own decision in respect of a bank over

which it exercises supervision, in accordance with paragraph 1(b), (e) and (f).

(7) Joint decisions made between Národná banka Slovenska and the supervisory

authorities referred to in paragraph 1 are binding for banks that are subject to supervision on a

consolidated basis.

Article 33s

Principle of proportionality

(1) Národná banka Slovenska may, on its own initiative, reduce proportionally the

range of requirements laid down in Articles 33o and 33q and to set a different time limit for the

preparation of a recovery plan and a different interval for its updating, while taking into account

the potential impact of failure by the bank on the financial system, other financial and non-

financial institutions, the terms and conditions of their financing, and on the economy as a

whole. In so doing, Národná banka Slovenska shall take into account the nature and complexity

of the bank’s activities, its shareholding structure, risk profile, size and legal position,

interconnectedness with other participants of the financial system, and membership of an

institutional protection system or other similar system under a separate regulation26g

, as well as

the investment services provided by that bank. In the case of any change in the circumstances,

Národná banka Slovenska may request the bank to draw up a recovery plan in the range

specified in Article 33o and 33q and to regularly update it in accordance with Article 33o(8).

(2) Národná banka Slovenska shall inform the European supervisory authority

(European Banking Authority) as to whether it applied the procedure set out in paragraph 1

and about the details of that procedure.

Article 33t

Intragroup financial support agreement

77

(1) A parent bank, an EU parent bank, a financial holding company, a mixed financial

holding company, a mixed-activity holding company established in the Slovak Republic,

a parent financial holding company, an EU parent financial holding company, a parent mixed

financial holding company, an EU parent mixed financial holding company and their

subsidiaries that are banks or financial institutions subject to consolidated supervision under

this Act (hereinafter ‘sub-group’) may enter into an agreement to provide financial support to

one or more members of the sub-group where, under the terms set out in paragraphs 2 to 7 and

in Articles 33u to 33z, there are satisfied the conditions for the imposition of an early

intervention measure as defined in Article 65(1) or of a comparable measure under the law of

the Member State in which the party concerned is established (hereinafter ‘group financial

support agreement’). Such financial support may be provided in the form of a loan, guarantee

or assets used as collateral (hereinafter ‘group financial support’). The recipient of group

financial support shall be entitled to use such support even in transactions with persons that

are not parties to the group financial support agreement.

(2) The provisions of paragraphs 3 to 7 and Articles 33o to 33z do not apply to the

financing arrangements made between the members of a sub-group if none of the parties to

these financing arrangements meets the conditions for the imposition of an early intervention

measure as defined in Article 65a(1) or of a comparable measure under the law of the

Member State in which the sub-group member concerned is established.

(3) Without prejudice to the other conditions set out in paragraphs 2, 4 to 7 and in

Articles 33s to 33y, group financial support may also be provided without a group financial

support agreement signed in advance where such action is in accordance with the internal

rules of the group concerned and if the member of the sub-group intending to provide such

support assesses that the provision of group financial support is necessary and represents no

risk for the group. The sub-group member shall, without delay, inform Národná banka

Slovenska of the provision of group financial support if the relevant group is subject to

supervision under this Act or to consolidated supervision.

(4) A group financial support agreement may contain a clause under which a sub-

group member receiving group financial support undertakes to provide such support to the

sub-group member providing the support in question.

(5) A group financial support agreement may only be concluded if:

(a) each party is acting freely in entering into such agreement;

(b) the agreement sets out principles for determining the consideration to be paid for the

provision of group financial support;

(c) the value of consideration is determined no earlier than at the time when a decision to

provide group financial support is adopted;

(d) in entering into such agreement and in determining the consideration for the provision of

group financial support, each party is acting in their own best interests which may take

account of any direct or indirect benefit that may accrue to a party as a result of the

provision of group financial support;

(e) each party providing group financial support must have full disclosure of relevant

information from any party receiving such support prior to determination of the

consideration for the provision of group financial support and prior to any decision to

provide group financial support;

(f) the conditions for the provision of group financial support are stipulated in accordance

with the requirements of Article 33w;

78

(g) the consideration to be paid for the provision of group financial support may take account

of information in the possession of the party providing such support based on it being in

the same group as the party receiving group financial support and which is not available

to the public;

(h) the principles for the calculation of the consideration to be paid for the provision of group

financial support must not take account of any anticipated temporary impact on market

prices arising from events external to the group.

(6) A group financial support agreement may only be concluded if, at the time the

proposed agreement is made, in the opinion of their respective supervisory authorities, none

of the parties meets the conditions for the imposition of a measure in accordance with Article

65a(1) or a comparable measure under the law of the Member State in which the party

concerned is established.

(7) Rights arising from a group financial support agreement are to be exercised by the

contracting parties on their own, without taking account of the contractual rights of third

persons.

(8) Under a group financial support agreement, group financial support may be

provided to one or more subsidiaries belonging to the same group. Group financial support

may also be provided by a parent undertaking to its subsidiary or by a subsidiary to its parent

undertaking under a group financial support agreement.

Article 33u

(1) If the members of a group agree to enter into a group financial support agreement,

the parent undertaking30zzaa

shall submit an application to Národná banka Slovenska, which

exercises supervision over that bank on a consolidated basis, for the approval of the draft

group financial support agreement. Apart from the elements prescribed in a separate

regulation89

, such application must contain a description of, and justification for, each of the

conditions stipulated for entry into a group financial support agreement and the relevant

documents confirming that the conditions have been met. The draft financial support

agreement, including the names of the group members who will be parties to the agreement, is

to be attached to the application, too.

(2) If Národná banka Slovenska as a supervisory authority responsible for exercising

supervision on a consolidated basis receives an application as referred to in paragraph 1, it

shall send an original copy of that application to the supervisory authorities exercising

supervision over the persons that will be parties to a group financial support agreement.

(3) Národná banka Slovenska shall, in its capacity as a supervisory authority in charge

of supervision on a consolidated basis, make every effort to reach a joint decision with the

supervisory authorities referred to in paragraph 2 as to whether a group financial support

agreement satisfies the conditions set out in Articles 33t and 33w, taking into account the

possible consequences of that decision, including the fiscal consequences of group financial

support provided in the Member States in which the relevant group operates. Národná banka

Slovenska shall decide in respect of an application as referred to paragraph 1 within four

months of the delivery date of that application. If the proposed group financial support

30zzaa

) Article 4(1)(29) of Regulation (EU) No 575/2013, as amended.

79

agreement complies with the conditions laid down in Articles 33t and 33w, Národná banka

Slovenska shall approve the group financial support agreement proposed; otherwise, the

application is to be rejected. If a joint decision cannot be reached within the time limit

specified in the second sentence, Národná banka Slovenska shall decide in respect of the

application on its own, taking into account the opinions and comments of the supervisory

authorities mentioned in paragraph 2. In that case, Národná banka Slovenska shall deliver

a copy of its decision to the supervisory authorities referred to in paragraph 2, as well as to the

parent bank.

(4) Prior to the expiry of the time limit specified in paragraph 3 for reaching a joint

decision under paragraph 3, Národná banka Slovenska may, in its capacity as a supervisory

authority in charge of supervision on the consolidated basis, request assistance from the

European supervisory authority (European Banking Authority) under a separate regulation.

(5) If, before a joint decision is reached pursuant to paragraph 3, Národná banka

Slovenska as a supervisory authority responsible for exercising supervision on a consolidated

basis or any of the supervisory authorities referred to in paragraph 3 requests assistance from

the European supervisory authority (European Banking Authority) to reach an agreement in

accordance with a separate regulation, Národná banka Slovenska shall await the decision of

the European supervisory authority (European Banking Authority) by which Národná banka

Slovenska is bound.

(6) The obligation to make every effort to reach a joint decision under paragraph 3

also applies where Národná banka Slovenska has received, from another Member State’s

supervisory authority in charge of supervision on a consolidated basis, an original copy of an

application for approval of a group financial support agreement. Národná banka Slovenska

may request assistance from the European supervisory authority (European Banking

Authority) to reach an agreement under a separate regulation.

(7) A joint decision reached between Národná banka Slovenska and the supervisory

authorities referred to in paragraph 3 is binding for the parties to a group financial support

agreement.

(8) Národná banka Slovenska shall submit to the Council a copy of each group

financial support agreement it has approved, as well as a copy of any amendment thereto.

Article 33v

Approval of group financial support agreement by shareholders

(1) After a draft group financial support agreement is approved pursuant to

Article 33u, the parties to the agreement shall submit the draft to the general meeting of

shareholders for approval. The group financial support agreement shall enter into force only if

approved by the general meeting, which shall authorise the statutory body to decide to accept

or provide group financial support in accordance with the terms of the agreement and the

provisions of Articles 33t to 33z. If the authorisation granted to the statutory body to accept or

provide group financial support is revoked, the agreement shall become invalid.

(2) The statutory body of each person that is a party to a group financial support

agreement shall submit, to the general meeting of shareholders on an annual basis, a report on

fulfilment of the group financial support agreement and on the adoption of any decision taken

on the basis of that agreement.

Article 33w

80

Conditions for the provision of group financial support

A member of a sub-group may provide group financial support only if all of the

following conditions are met:

(a) there is a reason to believe that the provision of group financial support will materially

improve the financial position of the recipient of such support;

(b) group financial support is provided to preserve or restore the financial stability of the

group concerned as a whole or of any member of that group in the interest of the sub-

group member providing such support;

(c) group financial support is provided for consideration in accordance with the conditions

laid down in Article 33t(5);

(d) according to the information that is available to the statutory body of the sub-group

member providing group financial support, there is a reason to believe that, at the time

the decision to provide such support is taken, the sub-group member accepting that

support pays consideration for the support provided and, if group financial support is to

be provided in the form of:

1. a loan, that loan is repaid in due time;

2. a guarantee, the provider of group financial support receives payment in an amount

corresponding to that provided from the guarantee and from the interest agreed,

within the agreed period after enforcing the rights arising from the guarantee;

3. other security, the provider of group financial support receives payment in an amount

corresponding to that of the loss sustained as a result of security realisation and of the

interest agreed, within the agreed period after security realisation;

(e) the provision of group financial support does not represent a threat to the liquidity or

solvency of the sub-group member providing such support;

(f) the provision of group financial support does not represent a threat to the financial

stability of the Member State in which the sub-group member providing that support is

established;

(g) at the time when group financial support is provided, the sub-group member providing

that support meets the requirements of this Act concerning capital and liquidity and the

provision of such support is unlikely to breach these requirements, except when Národná

banka Slovenska as the supervisory authority of the sub-group member concerned grants

approval for non-compliance with these requirements;

(h) at the time when group financial support is provided, the sub-group member providing

that support meets the requirements of this Act concerning large exposures and the

provision of such support is unlikely to breach these requirements, except when Národná

banka Slovenska as the supervisory authority of the sub-group member concerned grants

approval for non-compliance with these requirements;

(i) the provision of group financial support is unlikely to endanger the resolvability of the

sub-group member that intends to provide such support.

Article 33x

Decision to provide group financial support

(1) Group financial support may be provided on the basis of a decision taken by the

statutory body of the sub-group member that intends to provide such support. Such decision

must be issued in writing and must contain a justification, including a description of how

compliance with the requirements of this Act is ensured, especially with the conditions laid

down in Articles 33t and 33w, and the purpose for which such support is provided.

81

(2) Group financial support may be accepted on the basis of a decision taken by the

statutory body of the sub-group member that intends to accept such support.

(3) A sub-group member as referred to in paragraph 1 shall deliver any decision taken

in accordance with paragraph 1 to:

(a) Národná banka Slovenska;

(b) the supervisory authority of the Member State responsible for the supervision on an

individual basis of the sub-group member to which group financial support is provided;

(c) the supervisory authority responsible for the supervision on a consolidated basis of the

group concerned, if different from those mentioned in subparagraphs (a) and (b);

(d) the European supervisory authority (European Banking Authority).

(4) As a supervisory authority responsible for the supervision on a consolidated basis

of a group within which financial support is to be provided, Národná banka Slovenska shall,

without delay, notify the other members of the College, the Resolution Council, and the

members of the Resolution College30zzb

of any decision taken pursuant to paragraph 1.

(5) Before providing or accepting group financial support, the sub-group member

concerned shall verify whether the conditions set out in paragraph 1 or 2 have been met. If

the counterparty is based in another Member State, the sub-group member shall verify

whether the conditions stipulated by the law of that Member State have been met.

Article 33y

Prior approval for the provision of group financial support

(1) The statutory body of a sub-group member intending to provide group financial

support shall, before providing such support, notify the following authorities of this intention:

(a) Národná banka Slovenska;

(b) the supervisory authority exercising supervision over the recipient of such support;

(c) the supervisory authority exercising supervision on a consolidated basis over the group

concerned, if different from those referred to in subparagraphs (a) and (b);

(d) the European supervisory authority (European Banking Authority).

(2) A notification as referred to in paragraph 1 shall contain the statutory body’s

decision pursuant to Article 33x, including a justification and a description of all the relevant

aspects of the proposed group financial support that are not included in the statutory body’s

decision, as well as a copy of the group financial support agreement with a certificate of

validity in relation to the parties to the agreement, if such agreement has been concluded.

(3) If Národná banka Slovenska receives a notification as referred to in paragraph 2

from a bank over which it exercises supervision, that notification shall be treated as an

application for prior approval for group financial support; the due form of such application is

stipulated in a separate regulation30zzc

. Národná banka Slovenska shall grant prior approval for

the provision of group financial support only if the relevant conditions stipulated by this Act

are met. Otherwise the provision of group financial support is to be prohibited or restricted.

Národná banka Slovenska shall issue a decision within five working days of the delivery date

of a complete application.

30zzb

) Article 84 of Act No 371/2014 Coll. 30zzc

) Article 16(3) to (5) of Act No 747/2004 Coll., as amended.

82

(4) Národná banka Slovenska shall inform the supervisory authorities referred to in

paragraph 1(b) to (c) of its decision taken in accordance with paragraph 3.


supervision on a consolidated basis shall, without undue delay, inform the other members of

the College, the Resolution Council, and the members of the Resolution College30zzb

of the

granting of prior approval and of any decision it has issued or has been notified of by another

supervisory authority allowing, prohibiting or restricting the provision of group financial

support.

(6) If Národná banka Slovenska as a supervisory authority exercising supervision over

a bank that is to receive group financial support or as a supervisory authority responsible for

exercising supervision on a consolidated basis disagrees with a decision taken by another

Member State’s supervisory authority to restrict or prohibit the provision of group financial

support to the bank concerned, Národná banka Slovenska may, within two days of the date

when the issuance of such decision comes to its knowledge, request assistance from the

European supervisory authority (European Banking Authority) under a separate regulation.

(7) If Národná banka Slovenska grants prior approval pursuant to paragraph 3 or fails

to issue a decision within the period specified in paragraph 3, group financial support may be

provided in accordance with the terms and conditions set out in the relevant application and in

its annexes pursuant to paragraphs 2 and 3.

(8) If Národná banka Slovenska as a supervisory authority responsible for the

supervision on a consolidated basis of a group whose recovery plan contains the option of

using group financial support and the supervisory authority of a member of that group have

decided to prohibit or restrict the provision of such support between the group members,

Národná banka Slovenska may:

(a) revise the group recovery plan using the procedure described in Article 33r;

(b) request a group member which is subject to supervision on an individual basis by

Národná banka Slovenska and which has been prohibited from accepting group financial

support or the provision of such support has been restricted, to update its recovery plan;

and

(c) shall revise the group recovery plan using the procedure described in Article 33r, if

requested by the supervisory authority of the group member that has been prohibited from

accepting group financial support or the provision of such support has been restricted.

(9) If the supervisory authority exercising supervision on a consolidated basis over

a group whose group recovery plan contains the option of using group financial support and

any of the supervisory authorities of the members of that group have decided to prohibit or

restrict the provision of such support to a group member subject to supervision by Národná

banka Slovenska on an individual basis, Národná banka Slovenska may:

(a) request the supervisory authority exercising supervision on a consolidated basis over the

group concerned, to revise the group recovery plan; or

(b) request the group member concerned which has been prohibited from accepting group

financial support or the provision of such support has been restricted, to update its

recovery plan.

Article 33z

Information disclosure requirement

Sub-group members shall disclose information on their websites as to whether they

have entered into a group financial support agreement and a description of the general terms

83

and conditions, including the names of all parties to the agreement. The information disclosed

shall be updated at least once a year.

Article 34

(1) Unless such information is generally available to the public, banks and branches

of foreign banks may not conduct investment transactions:

(a) using information acquired in connection with their lending transactions and vice versa;

(b) for their own account, using information acquired in connection with their investment

transactions for client accounts and vice versa.

(2) For the purposes of paragraph 1, banks and branches of foreign banks shall in

particular make arrangements in their organisational, management, and control systems to

ensure the separation of lending transactions from investment transactions.

(3) ‘Lending transactions’ as referred to in paragraph 1 means activities related to the

provision of loans and guarantees.

(4) ‘Investment transactions’ as referred to in paragraph 1 means activities related to:

(a) investment in securities;

(b) trade in securities;

(c) trade in rights associated with securities or derived from securities;

(d) participation in the issuance of securities and the provision of related services; and

(e) the management of securities, including advisory services.

(5) Banks and branches of foreign banks may conduct investment transactions for the

account of clients only under conditions advantageous for the clients, in particular at a price

advantageous for the clients, while exercising due professional care, unless otherwise

requested by the clients; the provisions of Article 27(14) are not prejudiced by the foregoing.

(6) Banks and branches of foreign banks shall keep separate records of investment

transactions carried out for the account of clients and for their own account.

Article 35

(1) Banks and branches of foreign banks may not conduct transactions with persons

who have a special relationship with them, which they would normally, given the nature,

purpose or riskiness thereof, not carry out with other clients. Before entering into and

completing such transactions, banks and branches of foreign banks shall verify whether the

persons they conduct such transactions with do not have a special relationship with them;

such persons shall provide the bank or branch of a foreign bank with true information that the

bank or branch of a foreign bank need for the purposes of such verification. Banks and

branches of foreign banks shall arrange that the veracity of the data provided is ensured in

writing through a contract for a guarantee granted by them or a deposit agreement under

Article 5(a) subject to the sanction of invalidity, or through a loan agreement under

Article 5(b) subject to the sanction of immediate maturity of the entire outstanding amount as

at the day on which the bank or branch of a foreign bank learnt of the falsity of the data

provided, including interest for the whole agreed-upon loan life falling due.

(2) Banks and branches of foreign banks shall provide loans or issue guarantees to

persons mentioned in paragraph 1 above, only if unanimously decided so by the bank’s

84

statutory body or by the chief executive officer of a foreign bank branch on the basis of

a written assessment of the relevant banking transaction and the applicant’s financial

situation. The person concerned by the decision shall be excluded from the decision-making

process.

(3) Within 30 days from the end of the calendar year, every person mentioned in

paragraph 4(a), (b), (c) and (f) and paragraph 5(a), (b), (c) and (f) shall notify the bank or

branch of a foreign bank in writing of all facts needed to identify further persons who, as

a result of their relationship with the notifying person, have a special relationship with the

bank or foreign bank branch concerned. The bank or branch of a foreign bank shall process

this information into an overview of persons with a special relationship with the bank and,

when requested, deliver this overview to Národná banka Slovenska and the Deposit Protection

Fund for the purposes specified in a separate regulation32

. The elements of such overview

shall be stipulated in a decree23

to be issued by Národná banka Slovenska and promulgated in

the Collection of Laws.

(4) For the purposes of this Act, the following persons are deemed to have a special

relationship with a bank:

(a) members of the bank’s statutory body, senior employees, other staff members named in

the bank’s articles of association, and the bank’s general proxy;

(b) members of the bank’s supervisory board;

(c) legal persons exercising control over the bank, statutory body members and senior

employees of such legal persons;

(d) persons closely related30

to the bank’s statutory body members, supervisory board

members, senior employees, and natural persons exercising control over the bank;

(e) legal persons in which some of the persons mentioned in subparagraphs (a), (b), (c) or (d)

have a qualifying holding;

(f) shareholders with a qualifying holding in the bank and any legal person controlled by

them or controlling them;

(g) legal persons controlled by the bank;

(h) members of the Bank Board of Národná banka Slovenska;

(i) auditors or natural persons who, on behalf of an audit firm, perform an audit in the bank;

(j) members of another bank’s statutory body, chief executive officer of a foreign bank

branch;

(k) the bank’s mortgage controller and deputy mortgage controller;

(l) persons who have entered into a legal relationship with the bank, which may lead to the

acquisition of a qualifying holding in the bank.

(5) For the purposes of this Act, the following persons are deemed to have a special

relationship with a foreign bank branch:

(a) the chief executive officer of the branch of a foreign bank;

(b) the foreign bank’s statutory body or supervisory board members;

(c) legal persons having control over the foreign bank and the statutory body members of

such legal persons;

(d) persons closely related30

to the persons named in subparagraph (a) or (b) or natural

persons having control over the foreign bank;

(e) legal persons in which some of the persons named in subparagraphs (a), (b), (c) or (d)

have a qualifying holding;

(f) shareholders with a qualifying holding in the foreign bank and any legal person

controlled by them or controlling them;

(g) legal persons under the control of the foreign bank;

85

(h) members of the Bank Board of Národná banka Slovenska;

(i) auditors or natural person who, on behalf of an audit firm, performs an audit in the

foreign bank branch;

(j) the chief executive officer of another branch of a foreign bank and the statutory body

members of that bank;

(k) the bank’s mortgage controller and deputy mortgage controller.

Article 36

(1) The sum of loans not secured by a security interest in real property, provided by

a bank to its employee or another person in a special relationship with the bank under Article

35(4)(a), (b), (c), (d) and (f), may not exceed the total gross income of that person for the

previous 24 months. The total amount of loans provided by a bank to its employees under

preferential terms may not exceed 20% of the bank’s own funds.

(2) Banks may not provide loans or guarantee loan liabilities for:

(a) the acquisition of shares they have issued;

(b) the acquisition of shares issued by a person who has a qualifying holding in the bank;

(c) the acquisition of shares issued by legal persons who control or are controlled by persons

having a qualifying holding in the bank;

(d) the acquisition of shares issued by legal persons controlled by the bank;

(e) the repayment of another loan provided for any acquisition of shares under subparagraphs

(a) to (d) or for guaranteeing liabilities arising from such loans.

(3) Banks and branches of foreign banks may not acquire from persons they have

a special relationship with a claim that is assumed on justified grounds to not be settled

properly and in due time, or to take over a liability from such persons.

(4) Any legal act performed under paragraphs 2 and 3 shall be null and void.

(5) Banks may not provide loans or guarantee liabilities arising from loans granted to

employees or persons they have a special relationship with if the banks do not meet their

duties specified in Article 30(1), or if the persons in a special relationship with the banks do

not meet their duties set out in Article 35(3).

Article 37

(1) Banks and branches of foreign banks shall disclose, both on their websites and on

their business premises, clear information in written form in the Slovak language about their

commercial terms and conditions for accepting deposits, providing loans, and handling

banking transactions, including the prices thereof and examples. Where a bank or a foreign

bank branch makes a change in the terms and conditions of banking transactions or in the

prices of transactions, it shall give notice of this fact in the manner mentioned in the previous

sentence, at least 15 days before the relevant change enters into force, unless a separate

regulation provides otherwise or unless the bank or foreign bank branch has agreed otherwise

with the client. The bank shall also inform, in a demonstrable and comprehensible manner, its

clients without delay of its intention to discontinue a service or part thereof in accordance

with Article 28(1)(b), (c) or (d); the bank shall disclose this information without delay on its

website and business premises and shall ensure that it is kept disclosed until the relevant

service or part thereof is ended. The information disclosure requirement under this Act shall

86

not affect the provisions of Article 265 and Article 273(1) of the Commercial Code and

separate regulations.33

(2) When concluding any written contract for a transaction, other than a contract for

a transaction related to the provision of services linked to a payment account,33a

a bank or

a foreign bank branch shall inform the client of the annual percentage interest rate charged for

the transaction where such interest rate is agreed upon, and of the payments the bank or

foreign bank branch demands from the client or which are to be made in favour of the client,

insofar as they relate to the transaction contract in question; this obligation shall not apply to

payments associated with the non-fulfilment of obligations arising from that transaction

contract. In the case of a transaction related to the provision of services linked to a payment

account, the bank or foreign bank branch shall inform the client concerned in accordance with

a separate regulation.33b

(3) Banks and branches of foreign banks shall provide the Ministry and Národná

banka Slovenska with data on the payments they demand from their clients for selected types

of transactions, except for data on the fees charged for services linked to payment accounts.33a

Národná banka Slovenska shall publish these data on its website. Data on the fees charged for

services linked to payment accounts shall be provided by banks and branches of foreign banks

in accordance with a separate regulation.33c

(4) Banks and branches of foreign banks shall, on their websites and business

premises, publish written information on deposit protection and provide their clients with

such information in the range and in the manner stipulated by a separate law32

; this also

applies to foreign banks performing banking activities in the territory of the Slovak Republic

through their local branches or without opening such branches, without being involved in the

deposit protection system of the Slovak Republic.

(5) Banks shall deposit their annual reports in the public section of their registry of

accounting documents34

, within 30 days after the report is approved by the general meeting of

shareholders. This is without prejudice to the provisions of separate regulations35

. The annual

reports of banks shall contain their return on assets, expressed as the ratio of net profit to total

assets.

(6) The annual reports of banks as defined in a separate regulation35

shall contain the

following information:

(a) the nature and geographical location of the activities performed;

(b) total revenues;

(c) the number of employees in full employment as at the date of the financial statements;

(d) profit or loss before taxation;

(e) income tax;

(f) subventions received from public resources;

(g) return on assets, expressed as the ratio of net profit to total assets.

33

) Article 22c of Slovak National Council Act No 118/1996 Coll., as amended.

Articles 31 to 42 of Act No 492/2009 Coll., as amended.

Articles 431 to 455 of Regulation (EU) No 575/2013. 33a

) Article 2(36) of Act No 492/2009 Coll., as amended by Act No 405/2015 Coll. 33b

) Article 38(3) to (5) of Act No 492/2009 Coll., as amended by Act No 405/2015 Coll. 33c

) Article 34(d) of Act No 492/2009 Coll., as amended by Act No 405/2015 Coll. 34

) Article 23 of Act No 431/2002 Coll., as amended. 35


87

(7) Foreign banks operating in the territory of the Slovak Republic shall publish their

annual report in the Slovak language – including a summary of any differences between the

rules used for the preparation of financial statements in the Slovak Republic and in the

country where the foreign bank has its registered office – within 60 days after the report is

approved. An annual report of a foreign bank operating in the territory of Slovakia shall be

published on the bank’s website and shall remain published there at least until the publication

of the annual report for the next accounting period.

(8) Banks and foreign banks operating in the territory of the Slovak Republic shall

provide a copy of their annual report, or of any part thereof, to anyone who so requests; the

price for such copy shall not be higher than the cost of its production.

(9) Banks shall disclose information regarding:

(a) themselves and their activities;

(b) any corrective measures or fines imposed on them;

(c) their financial indicators;

(d) the total remuneration paid to their supervisory board members for the performance of

their duties, including remuneration for the performance of their duties for the bank paid

by an entity other than the bank;

(e) their selected shareholders in the range specified in Article 93(1)(a) points 1 and 2;

(f) the percentage of capital and voting rights held by their shareholders;

(g) the financial indicators of the consolidated group to which they belong and the structure

of this consolidated group in terms of its interrelations and composition under Article 44;

(h) facts about remuneration in the bank, resulting from the remuneration principles applied.

(10) Branches of foreign banks shall disclose information about themselves and their

activities, information about any corrective measures or fines imposed on them, and

information about their financial indicators.

(11) Banks and branches of foreign banks shall not disclose immaterial information,

internal information, and confidential information as defined in a separate regulation.35aa

(12) Banks and branches of foreign banks shall notify Národná banka Slovenska in

writing as to which pieces of information – from the information they are obliged to disclose

– they prefer not to disclose as they consider them to be immaterial, proprietary or

confidential; they shall do so prior to the deadline when the relevant information is to be

disclosed.

(13) If the information disclosed under paragraphs 9 and 10 is incomplete or diverges

substantially from reality, the bank or foreign bank branch concerned shall issue a correction

without delay.

(14) In a decree23

to be issued by Národná banka Slovenska and promulgated in the

Collection of Laws, the following shall be stipulated:

(a) the scope and form of information to be provided to clients under paragraph 2;

(b) the type of transaction, and the extent, method and deadline for information disclosure

under paragraph 3;

(c) the scope of information to be disclosed by a bank or a foreign bank branch under

paragraphs 9 and 10;

35aa


88

(d) the periodicity, method, and deadline for information disclosure under paragraphs 9

and 10;

(e) the publication of a correction and the definition of a substantial divergence from reality

of the information disclosed under paragraph 13;

(15) Any advertisement35a

or offer of a transaction, where an interest rate or any

numerical data related to the transaction is included, must contain comprehensible and clear

information on the per annum percentage rate of interest on the transaction.

(16) The provisions of paragraph 15 are without prejudice to the provisions of

a separate regulation.35b

(17) Banks, foreign banks, and branches of foreign banks may not require

consumers,27f

apartment owners’ associations35ba

or administrators35bb

entering into a loan

agreement on behalf of the owners of residential and non-residential premises in apartment

houses35bc

to make fee payments, cost reimbursements, or other payments for the registration,

management or administration of loans or loan accounts, or for the cancellation of loan

accounts, constituting a condition for a loan relationship; this shall not apply to accounts

defined in Articles 708 to 715 of the Commercial Code or in a separate law,35c

nor to special

services which do not represent a condition for a loan relationship and which are subject to

the written consent of the consumer, apartment owners’ association35ba

or administrator35bb

concerned entering into a loan agreement on behalf of the owners of residential and non-

residential premises in apartment houses.35bc

(18) Banks and branches of foreign banks shall submit to the Ministry data on their

schedule of fees and charges for natural persons not engaged in business. Such data shall be

submitted by banks and branches of foreign banks in the calendar year following the calendar

year in which their household deposits as at 31 December accounted for at least 2% of the

total outstanding amount of household deposits recorded under this Act and separate

regulations.35d

The range of data on the schedule of fees of charges for natural persons not

engaged in business and their structure, manner, date and place of submission shall be

specified in a generally binding legal regulation to be issued by the Ministry.

Article 38

(1) Banks and branches of foreign banks shall, even without the client’s consent, send

without undue delay to the Register of Bank Loans and Guarantees maintained by Národná

banka Slovenska36

(hereinafter ‘the Register’) in accordance with paragraph 2 data in writing

on the loans they have provided to businesses or other legal persons, on loan applications

received from businesses or other legal persons, on the securing of their claims arising from

35a

) Article 2 of Act No 147/2001 Coll. on advertising (and amending certain laws), as amended. 35b

) Act No 250/2007 Coll. on consumer protection (and amending Act No 372/1990 Coll. on infringements, as

amended), as amended. 35ba

) Articles 6 and 7 of Act No 182/1993 Coll. of the National Council of the Slovak Republic, as amended. 35bb

) Articles 6 and 8 of Act No 182/1993 Coll. of the National Council of the Slovak Republic, as amended. 35bc)

Article 2(2) of Act No 182/1993 Coll. of the National Council of the Slovak Republic, as amended. 35c

) Article 2(1)(d) and (9) of Act No 492/2009 Coll. 35d

) Article 77(7) of Act No 566/2001 Coll., as amended. Article 35(2) of Act No 747/2004 Coll., as amended.

Decree No 17/2011 of Národná banka Slovenska of 22 November 2011 on the submission of statements by

banks, branches of foreign banks, investment firms and branches of foreign investment firms for statistical

purposes (Notification No 24/2012 Coll.). 36

) Article 36 of Act No 566/1992 Coll. of the National Council of the Slovak Republic, as amended.

89

such loans, and on their liabilities to businesses or other legal persons in euro or in foreign

currency. Banks and branches of foreign banks shall be responsible for the correctness,

completeness, and timeliness of the data they have sent to the Register. Banks and branches

of foreign banks shall, even without the client’s consent, make corrections in the data stored

in the Register if these data are incorrect, incomplete or outdated, and shall notify Národná

banka Slovenska of the corrections made.

(2) The Register shall contain data on loans and collaterals sent by banks and

branches of foreign banks in accordance with paragraph 1 and by the Export-Import Bank of

the Slovak Republic in accordance with a special regulation;37aa

the Register shall not be

subject to registration under a separate regulation.37

(3) Národná banka Slovenska may, even without the client’s consent, use data from

the Register in performing its tasks and activities, and exercising its powers under this Act

and a separate law8. It may, even without the client’s consent, provide data from the Register

to banks, branches of foreign banks, and to the Export-Import Bank of the Slovak

Republic.37aa

Národná banka Slovenska may also provide data from the Register to clients, if

the data refer to them, at the written request of the clients concerned. A client’s request for

data from the Register must include the client’s officially certified signature, the signature of

the client’s statutory body, or other person demonstrably authorised to act on behalf of the

client. Attached to the application of a client who is an entrepreneur or a legal person is also

an extract from the Commercial Register or other official record in which the client is

registered, not older than one month when the application is delivered. Národná banka

Slovenska shall disclose information to the client within the period of one month after the

receipt of an application. If a client finds out that the Register contains incorrect or incomplete

data, the client may ask only the bank, the branch of a foreign bank, or the Export-Import

Bank of the Slovak Republic which sent these data to the Register, to correct them. Národná

banka Slovenska may stipulate a fee for providing data from the Register to a client, which is

due upon receipt of the application; these fees are also subject to the provisions of a separate

regulation on fees charged by Národná banka Slovenska.37ab

(4) The data sent to Národná banka Slovenska under paragraph 1 shall continue to be

subject to banking secrecy and it shall not be possible to provide them from the Register to

persons other than those named in paragraph 3. The data provided under paragraph 3 to banks,

branches of foreign banks, or the Export-Import Bank of the Slovak Republic, shall continue

to be subject to banking secrecy and it shall not be possible to disclose them to persons other

than the client to whom they refer to. Národná banka Slovenska shall store the data sent to the

Register in accordance with paragraph 1 for at least five years from the date of submission of

a loan application, the date of loan repayment, or the date of expiry of the loan security or the

loan liability accepted.

(5) Národná banka Slovenska may, on the basis of a written agreement and without

the client’s consent, provide data from the Register to another Member State’s central bank or

other entity that is obliged to maintain a database comparable to the Register on condition that

the terms of access to these data and the method of their protection in that Member State

satisfy the requirements laid down in this Act.

37aa

) Act No 80/1997 Coll. on the Export-Import Bank of the Slovak Republic, as amended. 37

) Act No 428/2002 Coll. on personal data protection, as amended by Act No 602/2003 Coll. 37ab

) Articles 41 and 42 of Act No 747/2004 Coll., as amended.

90

(6) The data provided to Národná banka Slovenska from the database of another

Member State’s central bank or other entity maintaining a database comparable to the

Register on the basis of a written agreement, shall become part of the Register.

(7) For the purposes of keeping and using the Register referred to in paragraphs 1

to 6, public authorities shall make available or provide free of charge to Národná banka

Slovenska any information and data from the public and non-public parts of the registers they

keep37aba

, lists and other files of information and related collections of documents, including

the Commercial Register, the register of sole traders, the register of organisations, and the

register of employers, in both paper and electronic form enabling remote access via electronic

communication.

(8) In a decree23


Slovenska shall stipulate details about the maintenance and use of the Register, the range and

form of data entered into or provided from the Register, the correction of data in the Register

and the delivery of notifications of such corrections, the technical aspects of data protection in

the Register, and the due form of an application for the provision of data from the Register

and the documents to be attached; the decree shall also stipulate the values or rates of fees

charged to clients for the provision of data from the Register and the details of these fees, as

well as the method of their calculation, rounding, and payment.

Article38a

(1) Banks and branches of foreign banks shall carry out a risk analysis related to the

security of the premises where business with clients is conducted by their employees and also

cash is handled by them.

(2) Banks and branches of foreign banks shall secure the premises where business

with clients is conducted by their employees and cash is handled by them as follows:

(a) with a functional and active security system combined with an alarm system, which are to

be connected to a Police Corps alarm monitoring facility, an alarm system operated by

a private security service, the municipal police or the bank’s own security service, or the

workplaces are to be protected physically by guards;

(b) with a functional and active security camera monitoring system with 24 hour quality

recording enabling the identification of persons;

(c) with other necessary security provisions based on the risk analysis made in accordance

with paragraph 1.

(3) Banks and branches of foreign banks shall not allow public access to the premises

where business with customers is conducted by their employees and cash is handled by them,

if none of the measures referred to in paragraph 2(a) and (b) is functional and active.

(4) Furthermore, banks and branches of foreign banks shall:

(a) discuss with the competent Police Corps unit the risk analysis mentioned in paragraph 1

and the security provisions set out in paragraph 2;

37aba

) For example, Article 27 of the Commercial Code as amended; Articles 60 to 60b of Act No 455/1991 Coll.

as amended; Articles 20 and 21 of Act No 540/2001 Coll. on government statistics, as amended; Article

170(3) and Article 226(1)(e) of Act No 461/2003 Coll. on social insurance, as amended; and Act No

530/2003 Coll., as amended.

91

(b) provide the Police Corps, upon request, with records and data obtained by the devices

specified in paragraph 2(b), for the purpose of discharging the responsibilities of the

Police Corps.

(5) In a decree to be promulgated in the Collection of Laws, Národná banka

Slovenska shall specify the contents, scope and deadline of a risk analysis under paragraph 1,

the definition of security provisions under paragraph 2, and the requirements related to these

security provisions.

PART SEVEN

BUSINESS DOCUMENTATION

Article 39

(1) Banks and branches of foreign banks shall maintain a trading book, which, for the

purposes of this Act, means a trading book as defined in a separate regulation.37ac

Requirements for how to maintain a trading book shall be laid down by the bank or foreign

bank branch concerned in its internal regulations.

(2) Positions in individual financial instruments or in individual commodities which a

bank or a foreign bank branch holds for trading mean those positions in which financial

instruments or commodities are held for short-term sale and with the objective of earning

income from the actual or expected differences between their buying and selling prices or

from other changes in their prices or in the interest rates thereon.

(3) Positions which a bank or a foreign bank branch records in the trading book shall

represent positions in individual financial instruments or commodities established during

own-account trading, positions in individual financial instruments or in individual

commodities arising from the provision of investment services to the client, and positions in

individual financial instruments or in individual commodities arising from market making.

The trading book may also record positions arising from internal collateral. Banks and

branches of foreign banks shall lay down rules and procedures for internal collateral

arrangements in an internal regulation and shall also ensure consistent monitoring of all

internal collateral agreements concluded.

(4) Banks and branches of foreign banks shall stipulate in an internal regulation

a procedure and method for the management of individual positions or of the aggregate

position recorded in the trading book, and for the management of risks arising from these

positions or from the aggregate position. By issuing such internal regulation, banks and

branches of foreign banks shall demonstrate their trading intention.

(5) For the purposes of capital requirement calculation, banks and branches of foreign

banks shall stipulate in an internal regulation a procedure for determining which positions in

financial instruments or commodities should be recorded in the trading book, and they shall

do so in accordance with the rules set out in paragraphs 1 to 4 and having regard to the

character of their risk management system. Banks and branches of foreign banks shall ensure

the regular verification of whether positions in financial instruments and in commodities are

being recorded in the trading book in accordance with this internal regulation; the verification

37ac


92

results shall be recorded in writing, and adherence to the procedure for determining which

financial instrument or commodity positions are to be recorded in the trading book shall be

subject to regular internal audit.

(6) Banks and branches of foreign banks shall value on a daily basis all positions

recorded in the trading book. For the valuation of positions recorded in the trading book,

banks and branches of foreign banks shall use the market prices of the given day. If the

market price of a financial instrument or commodity is not available for the given day, this

financial instrument or commodity may be valued at another appropriate price. To determine

another appropriate price for a financial instrument or commodity, banks and branches of

foreign banks shall use a qualified estimate based on their own method.

(7) Banks and branches of foreign banks shall maintain a banking book and make

daily entries therein of transactions and positions that are not recorded in the trading book

under paragraphs 1 to 6. Banks shall value all positions recorded in the banking book, with

regard to the degree of credit risk.

(8) For the purposes of maintaining a trading book and a banking book:

(a) ‘financial instrument’ means an investment instrument,37a

other security, other derivative

or legal relationship on the basis of which one party to the legal relationship acquires

a financial asset and the other party to the legal relationship acquires a financial liability

or equity instrument;

(b) ‘commodity’ means a tangible object or controllable energy, especially output, electrical

energy and raw material, including precious metals other than gold, which is traded or

may be traded on a secondary commodity market.

(9) Banks and branches of foreign banks shall keep an analytical record of the assets

and liabilities they handle in their own name for a client’s account, separately from their own

assets and liabilities.

(10) Banks and branches of foreign banks shall, in accordance with a separate

regulation,38

record in their accounts each accounting event related to a banking activity or

other activity they engage in as at the date when the accounting event took place.

(11) In addition to financial statements under a separate regulation30d

, banks and

branches of foreign banks shall prepare interim financial statements as at the last day of each

calendar quarter. Banka and branches of foreign banks shall submit interim financial

statements in writing to Národná banka Slovenska within 30 calendar days following the end

of the respective calendar quarter.

(12) In addition to financial statements under a separate regulation30d

, legal persons

belonging to a consolidated group as defined in Article 44 shall prepare interim financial

statements as at the end of the calendar half-year.

(13) A parent bank or a parent financial holding company shall prepare interim

consolidated financial statements as at the end of the calendar half-year. A parent bank or

a parent financial holding company shall submit interim consolidated financial statements in

37a

) Article 5 of Act No 566/2001 Coll. 38

) Article 2(4)(a) and (b) and Articles 24 to 29 of Act No 431/2002 Coll.

93

writing to Národná banka Slovenska within 60 calendar days following the end of the

respective calendar half-year.

(14) Banks and branches of foreign banks shall keep records of assets and liabilities30d

according to the risks or losses associated with them. On the basis of these records, banks and

branches of foreign banks shall compile and submit to Národná banka Slovenska a report on

the balance of assets and liabilities.

(15) In a decree23



(a) requirements for maintaining a trading book under paragraph 1, including a definition of

the term ‘management of the trading book and hedging of transactions in financial

instruments and in commodities’;

(b) requirements for recording positions arising from internal collateral arrangements in the

trading book under paragraph 3;

(c) requirements for the procedure and method used in managing individual positions or

aggregate positions recorded in the trading book under paragraph 4;

(d) the minimum extent of the areas to which the overall management of the trading book

under paragraph 4 refers;

(e) valuation rules for trading-book positions and the frequency of valuations, where the

market price in not available as mentioned in paragraph 6;

(f) the details of how to maintain the trading book in accordance with paragraphs 1 to 6;

(g) the details of records of assets and liabilities and the keeping of such records in

accordance with paragraph 14, as well as the contents, form, and breakdown of the

relevant report, and the deadline, method, and place of its submission.

Article 40

(1) In a written contract with an auditor, banks and branches of foreign banks shall

provide for:

(a) the preparation of an audit report focusing on the verification of data used in reports

required by Národná banka Slovenska under Article 42(2);

(b) the verification for correctness of the accounting records at the written request of

Národná banka Slovenska in the course of a calendar year; if no shortcomings are

revealed, Národná banka Slovenska shall compensate the bank concerned for its

necessary expenses;

(c) the preparation of an extended report41

with a layout stipulated by Národná banka

Slovenska in a decree23

promulgated in the Collection of Laws;

(d) the verification of data for correctness in accordance with Article 37(6).

(2) Banks and branches of foreign banks shall submit to Národná banka Slovenska an

audit report in accordance with paragraph 1(a) and (c) by 30 June of the year following the

calendar year that was audited. Under a separate regulation40

, audit reports on the annual

financial statements of banks shall be deposited in the public section of the register of

financial statements34

and those on the financial statements of branches of foreign banks in

the non-public section of the register34

by 30 June following the accounting period for which

the annual financial statements were audited.

41

) Article 2(1)(c) and Article 15(5)(c) of Act No 466/2002 Coll.

94

(3) Banks and branches of foreign banks shall notify Národná banka Slovenska in

writing of the auditor or audit firm that has been commissioned to examine the financial

statements, and shall do so by 30 June of the calendar year or the middle of the accounting

period for which the audit is to be performed; this shall also apply to auditors or audit firms

providing audit services to banks or branches of foreign banks on behalf of and for the

account of another auditor or audit firm. Národná banka Slovenska is entitled to refuse an

auditor or audit firm by 31 August of that calendar year or within eight months from the

beginning of the accounting period following the delivery of such notification. Where a bank

or a foreign bank branch has obtained banking authorisation in the current calendar year,

notification shall be given within three months from the day when the decision to issue

a banking authorisation became effective. In such cases, Národná banka Slovenska is entitled

to refuse the proposed auditor or audit firm within 30 days from the date of receipt of

a notification. Within 45 days from when the decision on refusal entered into force, the bank

or foreign bank branch concerned shall inform Národná banka Slovenska in writing of the

new auditor or audit firm. If Národná banka Slovenska refuses even the choice of another

auditor or audit firm, Národná banka Slovenska shall appoint an auditor or an audit firm to

examine the financial statements.

(4) A person in a special relationship with the bank as defined in Article 35(4)(a) to

(h) and (j) and in Article 35(5)(a) to (h) and (j), for reasons set out in a separate regulation42

,

or an auditor who fails to meet the requirements set out in paragraph 5, or the bank’s receiver

or deputy receiver during receivership, or an external advisor, may not be appointed as an

auditor. The same applies to natural persons who act as auditors for and on behalf of an audit

firm.

(5) The auditor shall inform without delay Národná banka Slovenska and the bank’s

supervisory board in writing of any facts the auditor may find in the course of audit in respect

of facts leading to an expression of qualified opinion on the annual financial statements of the

bank or foreign bank branch concerned and about identified violations of laws and other

generally applicable legal regulations. The auditor shall immediately notify Národná banka

Slovenska of the following findings:

(a) a bank is over-indebted;43

(b) a bank or a foreign bank branch produces untrue, incorrect, or incomplete financial

statements and reports at the request of Národná banka Slovenska under Article 42(2).

(6) A bank shall be deemed over-indebted if its assets, including claims, are exceeded

by its liabilities.

(7) An auditor shall, at the written request of Národná banka Slovenska, provide

documentation on facts specified in paragraph 5 and other information and supporting

documentation obtained during the performance of its activities in a bank or a foreign bank

branch.

(8) Banks and branches of foreign banks shall ensure the protection of electronically

processed and stored data against misuse, destruction, damage, theft, or loss.

42

) Article 19 of Act No 466/2002 Coll. 43

) Article 3(3) of Act No 7/2005 Coll., as amended by Act No 520/2005 Coll.

95

(9) Banks and branches of foreign banks shall, once a year, arrange a security audit of

their information system used for banking data processing and storage, and shall inform

Národná banka Slovenska about this audit in writing.

Article 41

(1) Banks and branches of foreign bank shall notify Národná banka Slovenska of any

intention to introduce a new type of transactions, together with an evaluation of such

transactions by the internal control and internal audit unit in accordance with Article 23(4).

(2) Banks and branches of foreign banks shall notify Národná banka Slovenska

without undue delay of any shortcomings found in the course of their activities under Article

23(4).

(3) Banks and branches of foreign banks shall, by 31 March of each calendar year,

submit to Národná banka Slovenska a report on the results of activities of their internal

control and internal audit unit for the previous calendar year, on measures adopted to remedy

any shortcomings in their operations detected by the internal control and internal audit unit,

and an approved plan of controlling activities for the current calendar year. Such report on the

results of activities of the internal control and internal audit unit shall also include the results

of controlling activities, the findings and the measures taken by the bank or foreign bank

branch concerned against money laundering and terrorist financing.

(4) For the purposes of this Act, ‘type of transaction’ means a set of transactions

within the scope of banking activities specified in Article 2(1) and (2), for which certain

attributes or contractual conditions for their provision by a bank or a foreign bank branch are

typical. Changes in interest rates or other price changes in respect of a transaction contracted

shall not constitute a new type of transaction.

Article 42

(1) Banks, foreign banks, and branches of foreign banks shall store data and copies of

documents proving the identity of clients, documents certifying the ownership of funds used

by clients to conduct transactions, and other documents on transactions, and shall protect

these data and documents against damage, alteration, liquidation, loss, theft, disclosure,

misuse, and unauthorised access for at least five years after a transaction, contract, etc. is

concluded.

(2) Banks, foreign banks, and branches of foreign banks shall produce and present to

Národná banka Slovenska returns, statements, and other reports in the stipulated manner, by

the stipulated deadlines; the structure, scope, contents, form, classification, deadlines, method,

procedure, and place of their presentation, including the methodology of preparation shall be

stipulated by Národná banka Slovenska in a decree23


Data and other information contained in returns, notifications and other reports must be

comprehensible, easy to follow, supportable, must give a true and fair picture of the facts

reported, and must be presented in due time. If the presented returns, notifications, and other

reports fail to comply with the prescribed methodology, or if reasonable doubts arise as to

their correctness or completeness, banks, foreign banks, and branches of foreign banks shall

provide Národná banka Slovenska with supporting material and explanation upon request,

within the stipulated time limit.

96

(3) Banks, foreign banks, and branches of foreign banks shall submit to Národná

banka Slovenska data from their accounting and statistical records in the form of returns,

reports, or reviews in the stipulated manner, by the stipulated deadlines. The scope, method,

and deadlines for such submission shall be stipulated by Národná banka Slovenska in a decree


(4) Banks, foreign banks, and branches of foreign banks shall submit to the Ministry

of Finance data from their accounting and statistical records in the form of returns, reports, or

reviews in the stipulated manner, by the stipulated deadlines; such data disclosures shall not

be deemed to be a breach of the confidentiality requirement under Article 91. The scope,

method, and deadlines for such submission shall be stipulated in a generally binding legal

regulation issued by the Ministry.

Article 43

The provisions of this part of the Act are without prejudice to the duties of banks and

branches of foreign banks stipulated in a separate regulation.39

PART EIGHT

SUPERVISION ON A CONSOLIDATED BASIS

Article 44

(1) ‘Supervision on a consolidated basis’ means supervision of a consolidated group

for the purpose of monitoring and mitigating the risks to which a bank is exposed by virtue of

its membership of a consolidated group.

(2) A consolidated group shall comprise:

(a) a parent bank or an EU parent bank, and at least one bank, financial institution, or

ancillary banking services undertaking over which the parent bank or EU parent bank

exercises control or in which it has a participating interest;

(b) a parent financial holding company, mixed-activity parent financial holding company,

EU parent financial holding company, or EU parent mixed-activity financial holding

company, and at least one bank over which a parent financial holding company, parent

mixed-activity financial holding company, EU parent financial holding company, or EU

parent mixed-activity financial holding company exercises control or in which it has

a participating interest; or

(c) a mixed-activity holding company and at least one bank over which the mixed-activity

holding company exercises control or in which it has a participating interest.

(3) Národná banka Slovenska shall exercise supervision over a consolidated group as

defined in paragraph 2(c) to the extent of monitoring the intragroup transactions made under

Article 49i(2) between a mixed-activity holding company and a bank that is part of

39

) Act No 431/2002 Coll., as amended by Act No 562/2003 Coll.

Regulation of the Ministry of Finance of the Slovak Republic No 21 832/2002-92 of 10 December 2002 on

details for the ordering and numbering of items in financial statements, contents of these items, and the

scope of financial data to be disclosed by banks, branches of foreign banks, Národná banka Slovenska, the

Deposit Protection Fund, investment firms, branches of foreign investment firms, the Guarantee Fund for

Investment, asset managers, branches of foreign asset managers and mutual funds (Announcement

No 738/2002 Coll.).

97

a consolidated group pursuant to paragraph 2(c), and to the extent of providing information in

accordance with Article 45(8).

(4) Národná banka Slovenska shall maintain a list of financial holding companies or

mixed-activity financial holding companies in accordance with a separate regulation44

and

paragraph 2(b). This list shall be forwarded to the Member States’ competent supervisory

authorities, the European supervisory authority (European Banking Authority), and to the

Commission.

(5) In supervising a consolidated group as defined in paragraph 2(a) or (b), Národná

banka Slovenska is entitled to exclude, from the consolidated group under supervision, any

person:

(a) whose registered office is located in a country where there are legal impediments to the

exchange of information for the purpose of exercising supervision on a consolidated

basis;

(b) whose inclusion in the group has no relevance for the purposes of supervision on

a consolidated basis, in particular if the person’s total assets are worth less than

EUR 10,000,000 or less than 1% of the total assets of the bank or financial holding

company or mixed-activity financial holding company; or

(c) whose inclusion in supervision on a consolidated basis is not appropriate in respect of the

tasks of supervision on a consolidated basis.

(6) Supervision on a consolidated basis shall, however, be exercised over the persons

mentioned in paragraph 5(b) where more than one of these persons jointly have relevance for

the purposes of supervision on a consolidated basis.

(7) Where a person is excluded under paragraph 5(b) or (c), Národná banka Slovenska

shall notify that person of this fact; such person shall provide upon request any information

required for the exercise of supervision to the competent supervisory authority of the Member

State in which the parent undertaking has its registered office.

(8) Národná banka Slovenska may request the information mentioned in Article 45(5)

to (7) and Article 46(1) from the subsidiaries of a bank, financial holding company, mixed-

activity financial holding company, or mixed-activity holding company that are not included

in a consolidated group under paragraph 2. In such cases, the information requested shall be

transmitted and verified using the procedures described in the said provisions.

(9) Národná banka Slovenska is entitled to exclude from supervision a subsidiary that

is a bank and to delegate its supervision to another Member State’s competent supervisory

authority, provided that this authority exercises supervision over the bank’s parent

undertaking and that the bank in question has been authorised by Národná banka Slovenska.

Such exclusion shall take place on the basis of a written agreement made under a separate

regulation44a

between Národná banka Slovenska and the competent supervisory authority of

the Member State concerned. Národná banka Slovenska shall notify the European supervisory

authority (European Banking Authority) of this agreement.

(10) Where a bank whose a parent undertaking is a foreign bank with a registered

office in a non-Member State, or a financial holding company with a registered office in

44

) Article 11 of Regulation (EU) No 575/2013. 44a


98

a non-Member State, or a mixed-activity financial holding company with a registered office in

a non-Member State is not subject to supervision on a consolidated basis under this Act,

Národná banka Slovenska shall verify whether the bank is subject to supervision equivalent to

supervision on a consolidated basis under this Act. In doing so, Národná banka Slovenska

shall take into account any guidance issued by the European Banking Committee and shall act

in consultation with the European supervisory authority (European Banking Authority).

(11) Národná banka Slovenska shall verify the fact stated in paragraph 10 at its own

initiative or at the request of a regulated entity holding a banking authorisation issued in

a Member State or at the request of the parent undertaking.

(12) If, under paragraph 11, Národná banka Slovenska finds that the supervision

exercised over a bank is not equivalent to supervision on a consolidated basis under this Act,

it shall, after consulting with the Member States’ competent supervisory authorities, include

this bank in supervision on a consolidated basis or shall exercise other appropriate

supervisory procedures that ensure the objectives of such supervision. For the purpose of

inclusion in supervision on a consolidated basis, Národná banka Slovenska may in particular

require the establishment of a financial holding company with a registered office in a Member

State. These procedures shall be reported by Národná banka Slovenska to the Member States’

competent supervisory authorities, to the European supervisory authority (European Banking

Authority), and to the Commission.


(a) ‘holding’ means the ownership, direct or indirect or a combination thereof, of at least

20% of the share capital or voting rights of a legal person, or the possibility of exercising

an influence over the management of this legal person, which is comparable with the

influence corresponding to such ownership;

(b) ‘regulated person’ means a bank, investment firm, insurance or reinsurance company,

asset management company, alternative investment fund manager, or an equivalent

foreign undertaking.

Article 45

(1) A parent bank shall ensure that the consolidated group to which it belongs also

complies with the provisions of Articles 23 and 27 and Article 29(4).

(2) A bank included in a consolidated group under Article 44(2)(b) shall ensure that

this consolidated group complies with the provisions of Articles 23 and 27 and Article 29(4).

(3) Where a consolidated group under Article 44(2)(b) includes more than one bank,

paragraph 2 shall apply only to the bank over which supervision is exercised on

a consolidated basis.

(4) Where a bank that is a subsidiary also controls a financial institution or an asset

management company with a registered office in a non-Member State or has a holding in such

entities, this bank shall ensure that the consolidated group to which it belongs complies with

the provisions of Articles 23 and 27 and Article 29(4); the same obligation shall fall to a bank

where the said control or holding is exercised or held by its parent financial holding company

or its parent mixed-activity financial holding company.

99

(5) A person included in a consolidated group under Article 44(2)(a) or (b) shall

produce and submit to Národná banka Slovenska, either directly or through a parent bank or

parent financial holding company or parent mixed-activity financial holding company, or

through a bank designated by Národná banka Slovenska, any statements, reports, and other

disclosures required for the exercise of supervision on a consolidated basis, in the stipulated

manner within the stipulated time limits; the parent bank or parent financial holding company

or parent mixed-activity financial holding company shall produce and submit to Národná

banka Slovenska any statements, reports, and other disclosures required for the exercise of

supervision on a consolidated basis, in the stipulated manner within the stipulated time limits;

their structure, scope, contents, form, classification, deadlines, method, procedure, and place

of presentation, including the methodology of preparation, shall be stipulated by Národná

banka Slovenska in a decree23

to be promulgated in the Collection of Laws. Data and other

information contained in these statements, reports, and other disclosures shall be

comprehensible, transparent, and conclusive, shall give a true picture of the reported facts,

and shall be submitted in due time. If the submitted statements, reports, and other disclosures

do not comply with the stipulated methodology, or if there are reasons to doubt their accuracy

or completeness, the bank, financial holding company, mixed financial holding company, or

other person that produced and submitted them shall, at the request of Národná banka

Slovenska, submit documents and give an explanation within the time limit set by Národná

banka Slovenska.

(6) The auditor of a person that is included in a consolidated group under Article

44(2)(a) or (b) shall, for the purposes of supervision on a consolidated basis, provide

information to Národná banka Slovenska and to the auditors of the parent bank or parent

financial holding company or parent mixed-activity financial holding company.

(7) A parent bank or parent financial holding company or parent mixed-activity

financial holding company shall notify Národná banka Slovenska of the auditors who will

carry out an audit of persons that are included in a consolidated group under Article 44(2)(a)

or (b), no later than the end of the calendar year for which the audit is to be conducted.

(8) Paragraphs 5 and 6 shall likewise apply to mixed-activity holding companies

under Article 44(2)(c), to persons included in a consolidated group under Article 44(2)(c), and

to the auditors of such persons.

Article 46

(1) A person included in a consolidated group under Article 44(2) shall put in place

control mechanisms to ensure that the information provided for the purposes of supervision

on a consolidated basis is correct, and shall also ensure that the consolidated group complies

with the provisions of Article 23 so that the control mechanisms are sufficiently harmonised

within the internal control system and that the information required for supervision on

a consolidated basis is accessible and sound. For the purposes of supervision on

a consolidated basis, persons included in a consolidated group shall provide each other with

the information required to meet the obligations arising from their inclusion in the

consolidated group.

100

(2) Národná banka Slovenska may conduct on-site inspections,45

or may request

another Member State’s competent supervisory authority to conduct on-site inspections, of

persons included in a consolidated group under Article 44(2) and having a registered office in

another Member State, for the purposes of supervision on a consolidated basis; Národná

banka Slovenska shall carry out an on-site inspection if so requested by another Member

State’s competent supervisory authority.

(3) For the purposes of supervision on a consolidated basis, a parent bank or parent

financial holding company shall ensure that persons included in a consolidated group under

Article 44(2) are audited. At the request of the parent bank or parent financial holding

company, these persons shall conclude an audit contract.

Article 47

(1) Where a bank is included in a consolidated group over which supervision is

exercised by another Member State’s competent supervisory authority, Národná banka

Slovenska shall be entitled to agree the conditions of supervision on a consolidated basis and

the method of information exchange in a written agreement concluded between Národná

banka Slovenska and the other Member State’s competent supervisory authority. The

concluding of such agreement shall be proposed by Národná banka Slovenska where the bank

included in a consolidated group under Article 44(2)(a) or (b) has its registered office in

another Member State. In the absence of such agreement, Národná banka Slovenska shall

exercise supervision on a consolidated basis if the bank with the largest balance sheet total

within the consolidated group has its registered office in the Slovak Republic. If, within

a consolidated group, a bank has the same balance sheet total as a foreign bank with

a registered office in another Member State, Národná banka Slovenska shall exercise

supervision on a consolidated basis if the bank had been authorised earlier than the foreign

bank.

(2) Národná banka Slovenska shall also exercise supervision on a consolidated basis

over banks with a registered office in another Member State, provided they are included in

a consolidated group under Article 44(2)(b).

(3) Národná banka Slovenska shall exercise supervision under paragraph 2 only if the

parent financial holding company, parent mixed-activity financial holding company, EU

parent financial holding company, or EU parent mixed-activity financial holding company has

the largest balance sheet total among other financial holding companies with a registered

office in another Member State, which have the same control over, or a participating interest

in, a bank in another Member State.

(4) Národná banka Slovenska shall exercise supervision under paragraph 2 only if at

least one of the banks included in a consolidated group under Article 44(2)(b) has its

registered office in the Slovak Republic; Národná banka Slovenska shall also exercise

supervision under paragraph 2 if the previous condition is not met by any other Member State

and if, among the banks included equally in the consolidated group of a financial holding

company whose registered office is in another Member State, the bank with the largest

balance sheet total has its registered office in the Slovak Republic.

45

) Article 36(4) of Act No 566/1992 Coll. of the National Council of the Slovak Republic, as amended by Act

No 149/2001 Coll.

101

(5) In the cases mentioned in paragraphs 2, 3 and 4, Národná banka Slovenska may,

by common written agreement with the other Member States’ competent supervisory

authorities, waive the conditions laid down in these paragraphs if their application would be

inappropriate in regard to the nature of the banks and the significance of their activities in

different countries, and appoint the competent supervisory authority of another Member State

to exercise supervision on a consolidated basis. In these cases, Národná banka Slovenska

shall, if necessary, give the EU parent bank or EU parent financial holding company or EU

parent mixed-activity financial holding company or the bank with the largest balance sheet

total an opportunity to state its opinion on the decision proposed in cooperation with the other

Member States’ competent supervisory authorities.

(6) At the request of another Member State’s competent supervisory authority,

Národná banka Slovenska shall conduct on-site inspections on a consolidated basis, or shall

allow persons authorised by another Member State’s competent supervisory authority to

conduct on-site inspections, in entities that are subject to supervision on a consolidated basis

in the Member State of that supervisory authority; the details of such on-site inspections on

a consolidated basis may be specified in an agreement concluded under paragraphs 1 and 5.

Prior to the commencement of an on-site inspection in the territory of the Slovak Republic,

the relevant supervisory authority of the Member State concerned shall notify Národná banka

Slovenska thereof. Persons authorised by that supervisory authority shall have the same

powers, obligations and responsibilities as the staff members of Národná banka Slovenska

authorised to conduct on-site inspections under a separate regulation; these persons, however,

are not required to produce a written protocol on the inspection they carry out, nor are they

required to set a time limit for adopting and implementing measures to eliminate any

shortcomings found during the inspection and to notify in writing the entity under supervision

thereof.

(7) Národná banka Slovenska shall meet any request received from another Member

State’s competent supervisory authority for information relating to the exercise of supervision

on a consolidated basis.

(8) Národná banka Slovenska shall notify the Commission and the European

supervisory authority (European Banking Authority) of any written agreement concluded

under paragraphs 1 and 5 and of the contents thereof.

(9) Where Národná banka Slovenska is responsible for the exercise of supervision on

a consolidated basis over EU parent banks and banks which are controlled by EU parent

financial holding companies or EU parent mixed-activity financial holding companies, or in

which EU parent financial holding companies or EU parent mixed-activity financial holding

companies have a participating interest, Národná banka Slovenska shall:

(a) plan and coordinate on-site inspections of day-to-day activities in regard to the

obligations laid down in Article 6(2), Articles 23 to 27, and Article 37(9) to (15) in

cooperation with the competent supervisory authorities;

(b) conduct on-site inspections and check for compliance with the requirements laid down in

Article 37 and Articles 45(1) to (3) and 46(1);

(c) coordinate the gathering and dissemination of relevant or essential information in going

concern and emergency situations for the competent supervisory authorities of other

Member States;

(d) plan and coordinate on-site inspections of day-to-day activities in cooperation with the

competent supervisory authorities and, if necessary, with the central banks in preparation

for and during emergency situations, including the period of adverse developments in

102

banks or foreign banks or in financial markets, while, if possible, using the available

means of communication to facilitate crisis management; the planning and coordination

of activities include emergency measures under Article 49(1) and (2), the preparation of

joint assessments, the implementation of contingency plans, and communication with the

public;

(e) warn the European supervisory authority (European Banking Authority) if the relevant

supervisory authorities fail to cooperate to the extent necessary for the performance of

tasks specified in subparagraphs (a) to (d).


(a) ‘relevant information’ means any information that is necessary for the exercise of

consolidated supervision by the competent supervisory authorities of Member States;

(b) ‘essential information’ means any information that may significantly influence the

assessment of a bank or a financial institution established in another Member State in

terms of reliability and security.

(11) In considering an application for prior approval under Articles 30 to 32, or for

prior approval to use own estimates of loss given default and own estimates of conversion

factors, submitted by an EU parent bank and its subsidiaries or jointly by the subsidiaries of

an EU parent financial holding company, Národná banka Slovenska shall cooperate with the

competent supervisory authorities of other Member States to decide whether or not to issue

the approval sought and to determine the terms and conditions to which such approval should

be subject. Such an application shall be submitted to Národná banka Slovenska only where it

concerns an EU parent bank or a bank which is controlled by an EU parent financial holding

company or an EU parent mixed-activity financial holding company, or in which an EU

parent financial holding company or an EU parent mixed-activity financial holding company

has a participating interest.

(12) Národná banka Slovenska shall make its own decision on an application as

described in paragraph 11 if, within six months, a joint decision is not taken with the

competent supervisory authorities of other Member States, whereby it is jointly approved as

a single document containing the rationale for that decision and it is not delivered within this

period to the applicant in the form of a decision on prior approval. This period shall begin on

the date of receipt of a complete application by Národná banka Slovenska, which shall

forward it to the competent supervisory authorities of other Member States without delay. If,

within six months, any of the supervisory authorities mentioned in paragraph 11 requests the

European supervisory authority (European Banking Authority) to provide assistance for

negotiating an agreement under a separate regulation, Národná banka Slovenska shall decide

on the application under paragraph 11 in accordance with the decision of the European

supervisory authority (European Banking Authority). If the European supervisory authority

(European Banking Authority) does not issue such decision within one month from when the

request for assistance is delivered, Národná banka Slovenska shall make its own decision on

the application.

(13) A decision taken by Národná banka Slovenska under paragraph 11, including the

complete rationale and the opinions of other Member States’ competent supervisory

authorities expressed during the six-month period, shall be delivered to the applicant and

forwarded to the other supervisory authorities.

103

(14) Národná banka Slovenska shall proceed as appropriate under paragraphs 11 to 13

where a bank whose registered office is in the territory of the Slovak Republic is subject to

consolidated supervision by another Member State’s competent supervisory authority.

(15) Národná banka Slovenska as a supervisory authority responsible for the exercise

of supervision on a consolidated basis shall:

(a) make, within its supervisory powers and jointly with the supervisory authorities

competent to exercise supervision over the subsidiaries of an EU parent bank or an EU

parent financial holding company or an EU parent mixed financial holding company,

every effort to reach a joint decision:

1. on the application of Articles 6(2) and 27(7) in order to determine the adequacy of the

consolidated level of own funds held by the group with respect to its financial

situation and risk profile, and the required level of own funds for the application of

Article 50(13) to each entity within the group on a consolidated basis;

2. on measures to address any significant matters and material findings relating to

liquidity supervision, including those relating to the adequacy of the organisation and

treatment of liquidity risks as required under Article 23(6)(a) point 4, and relating to

the need for institution-specific liquidity requirements;

(b) submit to the other competent supervisory authorities a report containing:

1. the risk assessment of the group of institutions on a consolidated basis under Articles

6(2) and 27(7) for the purposes of subparagraph (a) point 1;

2. the assessment of the liquidity risk profile of the group on a consolidated basis under

Articles 23(6)(a) point 4 for the purposes of subparagraph (a) point 2;

(c) reach a joint decision within four months under subparagraph (a) point 1 and within one

month under subparagraph (a) point 2 after a report is submitted in accordance with

subparagraph (b) point 1;

(d) consider, in a joint decision taken under subparagraph (c), the risk assessment of

subsidiaries made by the competent supervisory authorities under Articles 6(2) and 27(7)

and give full justification;

(e) deliver the joint decision mentioned in subparagraph (c) to the EU parent bank

concerned;

(f) consult, at the request of another competent supervisory authority, discrepancies arising

in connection with the decision with the European supervisory authority (European

Banking Authority); when the European supervisory authority (European Banking

Authority) gives its opinion, Národná banka Slovenska shall consider its

recommendations and explain any significant deviation;

(g) consult its approach with the European supervisory authority (European Banking

Authority) on its own initiative;

(h) issue a decision under Article 50(1)(m) in conjunction with Article 6(2) in case of non-

compliance with Article 27(3) on a consolidated basis, where a joint decision under

subparagraph (c) is not reached, while duly considering the risk assessment of

subsidiaries made by the competent supervisory authorities, including their opinions and

reservations;

(i) substantiate decisions issued under subparagraph (h);

(j) submit the decision made under subparagraph (h) to the competent supervisory

authorities and to the EU parent bank concerned;

(k) issue a joint decision under subparagraph (c) or, if such decision does not exist, it shall

issue a decision in accordance with subparagraph (h);

(l) review whether a decision is up-to-date and, if necessary, it shall update a joint decision

issued under subparagraph (c), and if there is no such decision, it shall examine the

current situation and, if necessary, it shall issue a new decision under subparagraph (h),

104

while a change or cancellation of an existing decision issued under subparagraph (h) is

also deemed to be a new decision; a verification of whether a decision is up-to-date and

a possible issue of a new decision is to take place at least once a year, or if the

supervisory authority competent to exercise supervision over the subsidiaries of an EU

parent bank or EU parent financial holding company or EU parent mixed-activity

financial holding company asks for the issue of a new decision as required under Article

50(13) by submitting a written and duly justified application to Národná banka

Slovenska, in which case a verification of whether the decision is up-to-date and

a possible issue of a new decision may be carried out on a bilateral basis between

Národná banka Slovenska and the competent supervisory authority that has submitted the

application;

(m) proceed as appropriate in accordance with subparagraphs (a) to (l), where a bank as

referred to Article 2(1) is placed under consolidated supervision exercised by another

Member State’s competent supervisory authority; a joint decision reached with the

competent supervisory authority responsible for the exercise of supervision on

a consolidated basis shall be binding for any bank that is subject to consolidated

supervision.

(16) If, within the time limit specified in paragraph 15(c), any of the supervisory

authorities mentioned in paragraph 15 requests the European supervisory authority (European

Banking Authority) to provide assistance for negotiating an agreement under a separate

regulation19

, Národná banka Slovenska shall decide in the matter as required by

paragraph 15(c) in accordance with the decision of the European supervisory authority

(European Banking Authority). If the European supervisory authority (European Banking

Authority) fails to issue such decision within one month from when the request for assistance

is delivered, Národná banka Slovenska shall decide independently.

Article 48

(1) Where an emergency situation arises, including adverse financial market

conditions, which potentially jeopardises the market liquidity and stability of the financial

system in any of the Member States, where entities of a group of banks or foreign banks have

been authorised or where significant branches as referred to in Article 6(14) are established,

Národná banka Slovenska shall, with regard to the confidentiality obligation, alert as soon as

practicable the Ministry and the competent supervisory authority in charge of consolidated

supervision of all facts that are important for the performance of their tasks. Where Národná

banka Slovenska is responsible for the exercise of supervision on a consolidated basis and an

emergency situation arises, including a situation described in a separate regulation45aa

or

adverse financial market conditions, which potentially jeopardise market liquidity and the

stability of the financial system in any of the Member States, where entities of a group of

banks or foreign banks have been authorised or where significant branches as referred to in

Article 6(14) are established, Národná banka Slovenska shall, with regard to the

confidentiality obligation, alert as soon as practicable the European supervisory authority

(European Banking Authority), the European Systemic Risk Board, the competent

supervisory authorities of other Member States, the Ministry, and other public authorities and

persons whose activities are related to supervision, and shall provide them with any

information that is relevant to the performance of their tasks.

45aa


105

(2) Národná banka Slovenska shall, when it needs information that has already been

provided to another Member State’s competent supervisory authority, contact this authority

whenever possible in order to prevent duplication of reporting to the various authorities

involved in supervision.

(3) In order to increase the effectiveness of supervision, Národná banka Slovenska, as

an authority responsible for the exercise of supervision on a consolidated basis, shall conclude

with the competent supervisory authorities of other Member States written agreements on

coordination and cooperation in regard to the exercise of supervision on a consolidated basis.

(4) The agreements mentioned in paragraph 3 may impose additional obligations on

Národná banka Slovenska in regard to the exercise of supervision on a consolidated basis, and

provide details about the common approach to be followed by supervisory authorities in

exercising supervision on a consolidated basis, and details about the decision-making process.

(5) When exercising supervision, Národná banka Slovenska shall cooperate with the

competent supervisory authorities of other Member States; in doing so, it shall provide them

with any information that is relevant (on request) and essential (on its own initiative) for the

exercise of supervision on a consolidated basis in accordance with regulations comparable

with this Act. Národná banka Slovenska shall cooperate with the European supervisory

authority (European Banking Authority) and supply it with any information needed for the

performance of tasks under a separate regulation.45ab

Národná banka Slovenska shall alert the

European supervisory authority (European Banking Authority) whenever:

(a) the competent supervisory authority of another Member State fails to the provide

Národná banka Slovenska with the necessary information; or

(b) the competent supervisory authority of another Member State refuses or fails to meet the

request of Národná banka Slovenska for information.

(6) Where a bank whose registered office is located in another Member State is

included in a consolidated group under Article 44(2)(a) or (b), Národná banka Slovenska shall

provide that Member State’s competent supervisory authority, which exercises supervision

over this bank, with all relevant information. In determining the extent of relevant

information, Národná banka Slovenska shall take into account the importance of these

subsidiaries within the financial systems of the Member States concerned.

(7) The essential information mentioned in paragraph 5 shall include the following

items:

(a) the legal, organisational, and management structure of a consolidated group at the

requested level, including all regulated entities, non-regulated entities, non-regulated

subsidiaries, and significant branches belonging to the group, and parent companies

included in that consolidated group under Article 7(2) and (3), Article 8(2) and (3),

Article 9(4) and (5), Article 37(8) and (9), and Article 47(1) and (9), and the list of

relevant supervisory authorities of other Member States, which exercise supervision over

the regulated entities of that consolidated group;

(b) the method of collecting data from banks pursuant to subparagraph (a) and the method of

their verification;

(c) the evaluation of adverse trends in the economic situation of banks under subparagraph

(a) or of other persons belonging to the same consolidated group, whose behaviour may

influence the economic situation of these banks;

45ab

) Article 35 of Regulation (EU) No 1093/2010

106

(d) major corrective measures taken by Národná banka Slovenska under Article 50, including

the imposition of a capital requirement higher than that laid down in Article 29(4), the

imposition of fines by Národná banka Slovenska under Article 50, and a decision to limit

the use of the advanced measurement approach under Article 32.

(8) In a decree23



(a) the extent and manner of compliance with the obligations of a parent bank, and the

method of consolidating data for these purposes;

(b) the extent and manner of compliance with the obligations of a bank included in

a consolidated group under Article 44(2)(a) or (b);

(c) the definition of the terms ‘emergency situation’ under Article 47(9) and Article 48(1),

‘significant bank’ under Article 48(7) and ‘major measures’ under Article 48(7).


supervision on a consolidated basis shall establish a college of supervisors (hereinafter

referred to as ‘College’) for the purpose of simplifying the performance of tasks specified in

Article 47(9), (11) to (15) and Article 48(1) and, with regard to the confidentiality obligation,

it shall ensure coordination and cooperation with the competent supervisory authorities of

non-Member States. Národná banka Slovenska shall provide, through the College, for the

fulfilment of the following tasks:

(a) the exchange of information between Národná banka Slovenska, the European

supervisory authority (European Banking Authority) under a separate regulation,45ac

and

other competent supervisory authorities;

(b) the conclusion of an agreement on the voluntary delegation of tasks and duties between

Národná banka Slovenska and other competent supervisory authorities;

(c) the definition of a time schedule for inspections to be conducted by supervisory

authorities, according to a risk assessment of the group under Article 6(2) and Article 47

(9);

(d) increase in the effectiveness of supervision in connection with a request for information

under Article 48(2) and (5);

(e) the consistent application of requirements for business activities under this Act in all

entities of a group of banks and foreign banks;

(f) the application of Article 47(9)(d);

(g) cooperation under Article 49k(2) and Article 49l;

(h) the application of Article 47k(1) and (3).

(10) Národná banka Slovenska shall set up and ensure the functioning of the College

under paragraph 9 on the basis of written agreements under Article 48(3). It may involve in

the activities of the College the competent authorities responsible for supervising the

subsidiaries of an EU parent bank or an EU parent financial holding company or an EU parent

mixed-activity financial holding company, as well as the competent authorities of Member

States where significant branches of credit institutions or central banks are established and, if

necessary, the competent supervisory authorities of non-Member States, with regard to the

confidentiality obligation. Národná banka Slovenska shall:

(a) chair the meetings of the College and shall decide which of the competent supervisory

authorities are to participate in the meetings or activities of the College;

(b) inform each member of the College in advance and accurately of the date, place, and

agenda of a meeting of the College;

45ac


107

(c) provide all members of the Collage with complete information on the decisions taken at

the meetings or on the measures adopted;

(d) take into account in its decisions the importance of the supervisory activities that are to be

planned or coordinated for these authorities and, in particular, the possible impacts on the

stability of the financial system in the Member States concerned under Article 6(2) and

on the obligations under Article 6(16);

(e) inform, in compliance with the confidentiality requirement, the European supervisory

authority (European Banking Authority) of the activities of the College.

(11) If Národná banka Slovenska is a member of a College set up by the competent

supervisory authority of another Member State, it shall cooperate closely with the competent

supervisory authority that established the College, as well as with other members of the

College and with the European supervisory authority (European Banking Authority).

Article 49

(1) Národná banka Slovenska shall, before issuing a decision, consult the competent

supervisory authorities of other Member States whenever a decision concerns a bank included

in a consolidated group among whose members are entities over which another Member

State’s competent supervisory authority exercises supervision, unless this Act provides

otherwise. This consultation obligation shall apply to decisions issued for a bank included in

a consolidated group, under which:

(a) a change is permitted in the bank’s shareholder structure or management structure;

(b) major corrective measures or fines under Article 50 are imposed.

(2) Národná banka Slovenska shall, in accordance with paragraph 1, always consult

the competent supervisory authority of another Member State where the decision under

paragraph 1(b) concerns an entity that is included in consolidated supervision, which is

exercised by that competent supervisory authority, except where such decision would prevent

the effective decision-making process; in this case, Národná banka Slovenska shall inform the

other Member States’ competent supervisory authorities without delay.

(3) At the request of another Member State’s competent supervisory authority in

charge of consolidated supervision, Národná banka Slovenska shall verify the information

needed for the exercise of supervision on a consolidated basis regarding an entity that is

subject to such supervision and whose registered office is in the territory of the Slovak

Republic, or it shall have such information verified by other authorised persons. Persons

authorised by another Member State’s competent supervisory authority are entitled to

participate in the verification of this information by Národná banka Slovenska or they may,

with the approval of Národná banka Slovenska, verify it on their own.

PART NINE

SUPPLEMENTARY SUPERVISION

OF FINANCIAL CONGLOMERATES

Article 49a

Supplementary supervision of financial conglomerates (hereinafter referred to as

‘supplementary supervision’) means the monitoring and regulating of the risks inherent in

financial conglomerates, which include banks, investment firms, insurance undertakings,

108

reinsurance undertakings, or asset management companies, for the purpose of minimising the

risks to which a bank or other regulated entity is exposed through its participation in

a financial conglomerate.

Article 49b


(a) ‘financial conglomerate’ means

1. a group if

1a it is controlled by a regulated person;

1b the regulated person mentioned in point 1a is a parent company of a financial

sector entity or a person having a participating interest in a financial sector entity

under Article44(5)(m), or a person linked to another financial sector entity by

a control relationship under Article49b(d), point 3;

1c at least one of the persons in the group is from the insurance sector and at least

one of them is from the banking sector or from the investment services sector;

1d the consolidated or aggregate activities of persons in the insurance sector and the

consolidated or aggregate activities of persons in the banking and investment

services sectors are significant according to Article 49e(2) and (4);

2. a group if

2a at least one of the persons in the group is a regulated person;

2b the group is not controlled by a regulated person and its activities are

concentrated in the financial sector in accordance with Article 49e(1);

2c at least one of the persons in the group is from the insurance sector and at least

one of them is from the banking sector or from the investment services sector;

2d the consolidated or aggregate activities of persons in a group in the insurance

sector and the consolidated or aggregate activities of persons in a group in the

banking and investment services sectors are significant according to Article

49e(2) and (4); or

3. a subgroup of another financial conglomerate, which meets the conditions set out in

point 1 or point 2;

(b) ‘financial sector’ means a sector composed of one or more of the following legal persons:

1. a bank or other financial institution under Article 5(ab), or an auxiliary banking

services undertaking; these entities constitute the banking sector;

2. an insurance or reinsurance undertaking,45a

or an insurance holding company under

a separate regulation;45ae

these constitute the insurance sector;

3. an investment firm or other legal person as defined in point 1, these form the

investment services sector;

(c) ‘group’ means a group of persons linked to each other by a control relationship as defined

in subparagraph (d), including a subgroup;

(d) ‘control’ means a relationship where:

1. one person controls another person;

2. one person has a participating interest in another person; or

3. persons are interlinked in a relationship involving influence over management which

is comparable to influence corresponding to a participation, or by the fact that two or

more persons have as members of their statutory body or supervisory board mostly

the same persons.

45a

) Article 2 of Act No 8/2008 Coll., as amended. 45ae

) Article 49(5)(c) of Act No 8/2008 Coll.

109

Article 49c

(1) Národná banka Slovenska shall exercise supplementary supervision where:

(a) a financial conglomerate is controlled by a bank;

(b) a financial conglomerate is controlled by a mixed financial holding company which is the

parent company of a bank and the financial conglomerate comprises no other regulated

persons;

(c) the parent company of a bank is a mixed financial holding company and the financial

conglomerate includes at least two regulated persons established in a Member State and

the most significant financial sector represented in the financial conglomerate is the

banking sector;

(d) a financial conglomerate is controlled by more than one mixed financial holding

companies established in various Member States, in each of which a regulated person is

established, while the regulated person with the largest amount of total assets within the

financial conglomerate is a bank or the most significant financial sector represented in the

financial conglomerate is the banking sector; if the banking sector also includes a foreign

bank established in a Member State, on the basis of an agreement concluded between

Národná banka Slovenska and the competent supervisory authority of that Member State;

(e) a financial conglomerate is controlled by a mixed financial holding company established

in the Slovak Republic, which is the parent company of more than one regulated persons

established in other Member States, and none of these regulated persons has been

authorised in the Slovak Republic and the most significant financial sector represented in

the financial conglomerate is the banking sector;

(f) a financial conglomerate is not controlled by a parent company or is controlled in a way

other than specified in subparagraphs (a) to (e), if the financial conglomerate’s most

important financial sector is the banking sector and the regulated person with the largest

amount of total assets in this sector is a bank.

(2) Národná banka Slovenska may, on the basis of an agreement with the Member

States’ competent supervisory authorities that are responsible for the supervision of regulated

persons included in a financial conglomerate and after consultation with the person

controlling the relevant financial conglomerate, undertake the exercise of supplementary

supervision even in cases that are not stated in paragraph 1, if appropriate in terms of the

goals of supplementary supervision.

(3) Národná banka Slovenska may, on the basis of an agreement with the Member


persons included in a financial conglomerate and after consultation with the person

controlling the relevant financial conglomerate, leave the exercise of supplementary

supervision in cases stated in paragraph 1 to the competent supervisory authority of the

Member State concerned, if appropriate in terms of the goals of supplementary supervision.

Article 49d

(1) Národná banka Slovenska shall determine, according to the criteria laid down in

Article 49e and in cooperation with the Member States’ competent supervisory authorities

that are responsible for the supervision of regulated persons belonging to a financial

conglomerate, which financial conglomerates are subject to supplementary supervision.

(2) Národná banka Slovenska shall report to the Member States’ competent

supervisory authorities that are responsible for the supervision of regulated persons included

110

in a financial conglomerate and to the Joint Committee of European Supervisory Authorities

set up under a separate regulation,45ad

any further proposal for the inclusion of a financial

conglomerate in supplementary supervision.

(3) Národná banka Slovenska shall inform the person that controls a financial

conglomerate under Article 49c(1) or the bank with the largest amount of total assets, if the

most significant financial sector represented in the financial conglomerate is the banking

sector, that the financial conglomerate concerned shall be subject to supplementary

supervision. Národná banka Slovenska shall report this fact to the competent supervisory

authority of the Member State in which a mixed financial holding company is established, as

well as to the Joint Committee of European Supervisory Authorities set up under a separate

regulation45ad

.

(4) Národná banka Slovenska shall notify the European Commission’s Committee for

Financial Conglomerates of the principles applied during the supplementary supervision of

risk concentration under Article 49h and of intragroup transactions under Article 49i.

(5) Národná banka Slovenska shall publish on its website a link to the list of financial

conglomerates that is available on the website of the Joint Committee of European

Supervisory Authorities set up under a separate regulation45ad

.

Article 49e

(1) Activities are regarded as concentrated in the financial sector if the proportion of

total assets held by regulated persons and non-regulated persons in the financial sector to the

total assets of the group as a whole is larger than 40%.

(2) Activities in financial sectors are significant if the average value of proportions

from the individual financial sectors is higher than 10%, while the average is calculated from

the following proportions:

(a) the proportion of total assets in a financial sector to the total assets of financial sector

entities within the group, and

(b) the proportion of the minimum amount of own funds in a financial sector to the sum of

the minimum amounts of own funds of financial sector entities within the group.

(3) The smallest financial sector in a financial conglomerate is the financial sector

with the smallest average proportion under paragraph 2; the most significant financial sector

in a financial conglomerate is the financial sector with the largest average proportion under

paragraph 2. For the purpose of calculating the average proportion under paragraph 2 for

determining the smallest and most significant financial sectors, the banking sector and the

investment services sector are regarded as one sector.

(4) Where a group does not achieve the average value of proportions under

paragraph 2 but total assets in the smallest financial sector within the group amount to more

45ad

) Article 54 of Regulation (EU) No 1093/2010. Article 54 of Regulation (EU) No 1094/2010 of the European

Parliament and of the Council of 24 November 2010 establishing a European supervisory authority

(European Insurance and Occupational Pensions Authority), amending Decision No 716/2009/EC and

repealing Commission Decision 2009/79/EC (OJ L 331, 15.12.2010). Article 54 of Regulation (EU) No

1095/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European

supervisory authority (European Securities and Markets Authority), amending Decision No 716/2009/EC

and repealing Commission Decision 2009/77/EC (OJ L 331, 15.12.2010).

111

than EUR 6 billion, or if a group achieves the average value of proportions under paragraph 2

but total assets in the smallest financial sector within the group amount to less than

EUR 6 billion, Národná banka Slovenska shall be entitled to decide, upon agreement with the

other Member States’ competent supervisory authorities that are responsible for the

supervision of regulated persons belonging to a financial conglomerate, that the group will not

be deemed to be a financial conglomerate or that the provisions of Articles 49g to 49j will not

be applied where the exercise of supplementary supervision is not appropriate in terms of the


(5) Národná banka Slovenska shall report its decisions taken under paragraph(4) to

the other Member States competent supervisory authorities that are responsible for the

supervision of regulated persons belonging to a financial conglomerate, and shall publish

these decisions unless their publication is hindered by extraordinary circumstances.

(6) Národná banka Slovenska shall be entitled, upon agreement with the other

Member States’ competent supervisory authorities that are responsible for the supervision of

regulated entities belonging to a financial conglomerate, to exclude one or more participations

in the smallest financial sector if these participations are decisive for the identification of

a financial conglomerate and they together are of negligible importance for the purposes of

supplementary supervision. Národná banka Slovenska shall be entitled, upon agreement with

the other Member States’ competent supervisory authorities that are responsible for the

supervision of regulated persons belonging to a financial conglomerate, to exclude a legal

person from the calculation of proportions under paragraphs 1 to 3, where the person

concerned:

(a) is established in a country that is not a Member State and the law of that country does not

enable the exchange of information for the purposes of supplementary supervision; from

the calculation of proportions under paragraphs 1 to 3, however, it is not possible to

exclude a person that has demonstrably moved its registered office from a Member State

to a non-Member State with the aim of avoiding supervision;

(b) is of negligible importance for the purposes of supplementary supervision;

(c) is unsuitable for being included in a financial conglomerate in terms of the goals of

supplementary supervision.

(7) Národná banka Slovenska shall be entitled, after consultation with the other


regulated persons included in a financial conglomerate, to take into account the values of

proportions given in paragraphs 1 and 2 for three successive years, in order to avoid a sudden

change in the regime of supplementary supervision, and to leave out of consideration the

values of proportions given in paragraphs 1 and 2, if significant changes occur in the structure

of the group.

(8) Národná banka Slovenska shall be entitled, in fully justified cases and after

consultation with the other Member States’ competent supervisory authorities that are

responsible for the supervision of regulated persons included in a financial conglomerate, to

replace or amend a criterion based on total assets with criteria based on the structure of

incomes, total assets under management, or off-balance-sheet operations in the calculation of

proportions under paragraphs 1 and 2, i.e. with one or more criteria at the same time, or to add

one or more criteria if they are of special importance in terms of the goals of supplementary

supervision.

112

(9) If the value of a proportion mentioned in paragraph 1 falls below 40% or the

average value of proportions under paragraph 2 drops below 10% for financial conglomerates

that are subject to supplementary supervision, the value of the proportion calculated under

paragraph 1 shall be 35% in the next three years, and the average value of proportions

calculated under paragraph 2 shall be 8%.

(10) If, in the case of a group that is already under supplementary supervision, total

assets in the group’s smallest financial sector fall below EUR 6billion, the amount to be used

in calculations under paragraph 4 shall be EUR 5 billion in the next three years.

(11) Národná banka Slovenska is authorised to stipulate, with the consent of other


regulated persons belonging to in a financial conglomerate and during the period set in

paragraphs 7 to 10, that the lower values of proportions or the smaller amount given in

paragraphs 7 to 10 are no longer valid for financial conglomerates that are subject to

supplementary supervision.

(12) Calculations regarding total assets are made on the basis of a summary of data on

the total assets of persons in a group obtained from their annual financial statements. For the

purposes of such calculations, in the case of persons in which a holding has been acquired, the

amount of the acquired holding is taken into account. If consolidated financial statements are

available, such statements will be used instead of a summary of data.

(13) For the purposes of supplementary supervision, ‘minimum amount of own funds’

means such an amount of own funds that corresponds to at least the sum of the own funds

requirements20a

to be met by banks, at a constant level of risk.

(14) Requirements for the minimum amount of own funds of regulated persons other

than banks, which are taken into account in the calculations under paragraphs 2 to 6, are

stipulated under separate regulations45b

, which apply to the determination of capital

requirements, the amount of own funds, and the solvency of the regulated person concerned.

(15) Národná banka Slovenska shall evaluate each year the process of supplementary

supervision for deviations and shall assess the quantitative indicators specified in

paragraphs 1 to 14 and the risks faced by financial groups.

Article 49f

(1) A bank that is part of a financial conglomerate shall observe the conditions laid

down in Articles 49g to 49j, where:

(a) it controls the financial conglomerate;

(b) its parent company is a mixed financial holding company located in a Member State;

(c) it is linked with a legal person from another financial sector by a control relationship as

defined in Article 49b(d), point 3, or

(d) its parent company is a regulated person or a mixed financial holding company

established in a non-Member State, where financial conglomerates are under supervision

that is equivalent to supplementary supervision.

45b


Act No 95/2002 Coll., as amended.



113

(2) Where a financial conglomerate is a subgroup of another financial conglomerate,

which includes a bank satisfying one of the conditions set out in paragraph 1, the conditions

stipulated in Articles 49g to 49j shall apply to the bank that is part of the financial

conglomerate comprising a subgroup.

(3) A bank whose parent company is a regulated person or a mixed financial holding

company established in a non-Member State, where financial conglomerates are not subject to

supervision that is equivalent to supplementary supervision, shall comply with the conditions

laid down in Articles 49g to 49j. If the conditions stipulated in Articles 49g to 49j cannot be

observed owing to the fact that the supervision of financial conglomerates by a non-Member

State is not equivalent to supplementary supervision, Národná banka Slovenska shall be

entitled to stipulate that a bank that is part of a financial conglomerate shall supply Národná

banka Slovenska with special statements, returns, and other reports on participation in such

a financial conglomerate, and to restrict or prohibit the bank from conducting intragroup

transactions that may affect compliance with the requirement to maintain an adequate amount

of own funds at the level of the financial conglomerate.

(4) Národná banka Slovenska shall verify whether a financial conglomerate as defined

paragraph 3 is under supervision that is equivalent to supplementary supervision, if it is so

agreed with the supervisory authorities of the Member States in which the regulated persons

constituting the financial conglomerate are established, at the request of the parent company

under paragraph 3, or at the request of the regulated person that is part of the financial

conglomerate, or on its own initiative. Národná banka Slovenska shall discuss the issuance of

a decision under paragraph 3 with the European Commission’s Committee for Financial

Conglomerates and shall report the issuance of a decision under paragraph 3 to the

Commission. If Národná banka Slovenska fails to reach an agreement with the competent

authority of the Member State concerned in the matter mentioned in the first sentence, it shall

proceed in accordance with a separate regulation45c

.

(5) Where legal persons have a participating interest in one or several regulated

persons or they exercise significant influence over regulated persons without capital

participation other than influence pursuant to paragraphs 1 to 3, Národná banka Slovenska

shall determine, in cooperation with other Member States’ competent supervisory authorities

that are responsible for the supervision of regulated persons included in a financial

conglomerate, whether and to what extent these regulated persons will be subject to

supplementary supervision as if they were a financial conglomerate subject to supplementary

supervision. In such cases, Národná banka Slovenska shall inform the Commission and the

other Member States’ competent supervisory authorities that are responsible for the

supervision of regulated persons included in the financial conglomerate. For supplementary

supervision to be conducted, at least one of the legal persons mentioned in the first sentence

must be a bank and the conditions stipulated in Article 49b(a), points 1c and1d, must be

satisfied; this is necessary for the goals of supplementary supervision to be fulfilled.

Article 49g

45c


Article 19 of Regulation (EU) No 1094/2010.

Article 19 of Regulation (EU) No 1095/2010.

114

(1) Banks shall, in accordance with Article 49f(1), ensure that a sufficient amount of

own funds is maintained at the level of financial conglomerates and that rules are adopted at

the level of financial conglomerates to this end. The own funds of a financial conglomerate

are regarded as sufficient if the difference between the own funds of the financial

conglomerate and the sum of the minimum amounts of own funds of persons in the financial

conglomerate is zero or a positive figure.

(2) Banks that are part of a financial conglomerate shall calculate the adequate

amount of own funds using one of the methods stipulated in a generally binding legal

regulation to be issued by Národná banka Slovenska in accordance with paragraph 9.

(3) Národná banka Slovenska shall be entitled, after consultation with other Member


persons included in a financial conglomerate, to notify a regulated person or a mixed financial

holding company, on its own initiative or at the request of the regulated person or mixed

financial holding company concerned under paragraph 4, as to which of the methods

stipulated in a generally binding legal regulation under paragraph 9 is to be applied for

calculating the adequate amount of own funds.

(4) Banks controlling a financial conglomerate shall supply Národná banka

Slovenska, semi-annually or at the request of Národná banka Slovenska, with data on the

amount of own funds and the amount of own funds at the level of the financial conglomerate

needed for meeting the requirement to maintain a sufficient amount of own funds in

a financial conglomerate that is subject to supplementary supervision. If a financial

conglomerate is not controlled by a bank, data as mentioned in the first sentence shall be

supplied to Národná banka Slovenska by a mixed financial holding company or by a regulated

person selected by Národná banka Slovenska after consultation with the regulated persons or

mixed financial holding companies that constitute the financial conglomerate.

(5) Requirements for own funds shall be taken into account in the calculation of the

amount of own funds at the level of financial conglomerates only in respect of persons referred

to in Article 49b, subparagraph (b).

(6) Národná banka Slovenska shall be entitled to decide to omit, from the calculation

of the amount of own funds at the level of a financial conglomerate that is subject to

supplementary supervision, a person:

(a) established in a non-Member State, the law of which does not enable the exchange of

information for the purposes of supplementary supervision;

(b) of negligible importance for the purposes of supplementary supervision of regulated

persons within a financial conglomerate; this shall not apply where more legal persons

are to be omitted from the calculation, whose total share in the financial conglomerate is

significant under Article 49e(2) and (4);

(c) whose inclusion in the calculation would be inappropriate or inadequate in terms of the


(7) Národná banka Slovenska shall discuss the omission of a person referred to in

paragraph 6(c) with the competent supervisory authority that is responsible for the exercise of

supplementary supervision in the relevant Member State.

(8) Paragraph 6 is without prejudice to the obligation of the persons concerned to

supply information for the purposes of supplementary supervision, or to the authorisation of

115

supervisory bodies to provide information on these persons for the purposes of supplementary

supervision or supervision of financial conglomerates in another Member State.

(9) For the purpose of calculating the adequate amount of own funds for financial

conglomerates, Národná banka Slovenska shall, in a decree to be promulgated in the

Collection of Laws, stipulate:

(a) the source of own funds for financial conglomerates, the method of their calculation,

including the own funds of a mixed financial holding company;

(b) the minimum amount of own funds for financial conglomerates and the method of its

calculation;

(c) the methods of calculating the adequate amount of own funds for financial

conglomerates.

Article 49h


Slovenska, semi-annually or at the request of Národná banka Slovenska, with data on risk

concentration in the financial conglomerate. If a financial conglomerate is not controlled by

a bank, the data mentioned in the first sentence shall be supplied to Národná banka Slovenska

by a mixed financial holding company or by a regulated person selected by Národná banka

Slovenska after consultation with the regulated persons or mixed financial holding companies

that constitute the financial conglomerate.

(2) For the purposes of supplementary supervision, ‘risk concentration within

a financial conglomerate’ means any activity performed by persons belonging to the financial

conglomerate, which may cause a loss large enough to threaten the solvency, safety, and

financial position of the regulated persons included in the financial conglomerate; such risk

concentration may be caused by credit risk, investment risk, insurance risk, market risk,

liquidity risk, client risk, operational risk, other risks, or a combination of these risks.

(3) Where a financial conglomerate is controlled by another regulated person, risk

concentration within the financial conglomerate shall be governed, as appropriate, by the

provisions of a separate regulation45b

.

(4) Where a financial conglomerate is controlled by a mixed financial holding

company and where the most significant financial sector represented in the financial

conglomerate is the banking sector, risk concentration in the banking sector and in the mixed

financial holding company shall be governed by the provisions of Article 33.

(5) For the purpose of determining the degree of risk concentration, Národná banka

Slovenska shall, in a decree to be promulgated in the Collection of Laws, provide details

about:

(a) the large exposures of financial conglomerates and the method of their calculation;

(b) the large exposures of the banking sector and the method of their calculation;

(c) the large exposures of mixed financial holding companies and the method of their

calculation;

(d) risk concentration in financial conglomerates and the method of its calculation.

Article 49i

116


Slovenska, semi-annually or at the request of Národná banka Slovenska, with data on

significant intragroup transactions conducted by the financial conglomerate. If a financial

conglomerate is not controlled by a bank, the data mentioned in the first sentence shall be

supplied to Národná banka Slovenska by a mixed financial holding company or by a regulated

person selected by Národná banka Slovenska after consultation with the regulated persons or

mixed financial holding companies that constitute the financial conglomerate.

(2) For the purposes of supplementary supervision, ‘intragroup transaction’ means

any transaction in which regulated persons constituting a financial conglomerate rely, either

directly or indirectly, upon other persons from the same group or upon any natural or legal

person they control, for the discharge of an obligation, regardless of whether or not

contractual, and whether or not for payment.

(3) For the purposes of supplementary supervision, ‘significant intragroup

transaction’ means an intragroup transaction, amounting to at least 5% of the amount of own

funds held by a financial conglomerate, determined pursuant to Article 49g(9)(a).

(4) Significant intragroup transactions with persons in a special relationship shall be

governed by the provisions of Article 35.

(5) If a financial conglomerate is controlled by a mixed financial holding company

and if the most significant financial sector represented in the financial conglomerate is the

banking sector, intragroup transactions conducted by the banking sector and by mixed

financial holding companies shall be governed by the provisions of Article 44(4).

Article 49j

(1) A bank that is part of a financial conglomerate shall create a risk management

system and an internal control system, including bookkeeping and control procedures for the

purpose of monitoring and observing the provisions of this Act at the level of the financial

conglomerate.

(2) For the purposes of supplementary supervision, a risk management system shall

comprise:

(a) an appropriate management system ensuring the approval and regular inspection of

a financial conglomerate’s business strategy in relation to the risks arising from the

activities of the financial conglomerate;

(b) procedures for ensuring a sufficient amount of own funds, which include the possible

impact of the business strategy on a bank’s risk profile and own funds;

(c) procedures for monitoring the risks and measures designed to ensure the monitoring and

management of risks within a financial conglomerate.

(d) measures designed to prepare and develop appropriate plans and procedures for recovery

and bankruptcy prevention; these measures are to be updated on a regular basis.

(3) For the purposes of supplementary supervision, an internal control system shall

comprise:

(a) procedures for identifying and measuring the risks affecting the observance of provisions

concerning the amount of own funds to be maintained by a financial conglomerate

and methods for evaluating their functioning and effectiveness;

117

(b) procedures for evaluating the bookkeeping system and the supply of information for the

purposes of identifying, measuring, monitoring, and managing intragroup transactions

and the concentration of risks.

(4) A bank that is part of a financial conglomerate shall, at the level of the financial

conglomerate:

(a) supply Národná banka Slovenska, on an annual basis, with information on its legal form,

management and organisation structure, including the list of persons it regulates, non-

regulated subsidiaries, and major branches;

(b) publish, on its website, information about its legal form, management and organisation

structure.

(5) If Národná banka Slovenska coordinates the exercise of supplementary

supervisions under Article 49k(2), it shall report information pursuant to paragraph 4 and

Article 491(3)(a) to the Joint Committee of European Supervisory Authorities set up under

a separate regulation45ad

.

Article 49k

(1) In exercising supplementary supervision, Národná banka Slovenska shall:

(a) provide for the coordination of the collection and dissemination of information needed

for monitoring the activities of financial conglomerates and for the provision of vital

information for the exercise of supplementary supervision in individual financial sectors

to other states’ competent supervisory authorities that are responsible for the supervision

of regulated persons included in a financial conglomerate;

(b) gather information for evaluating the financial situation of financial conglomerates for the

purposes of supplementary supervision;

(c) monitor the observance of provisions concerning the sufficient amount of own funds, risk

concentration, and intragroup transactions;

(d) monitor the structure of financial conglomerates, their organisation, and the functioning

of their internal control system in accordance with Article49j;

(e) plan and coordinate the exercise of supplementary supervision under any conditions in

cooperation with other states’ competent supervisory authorities that are responsible for

the supervision of regulated entities included in a financial conglomerate;

(f) perform other tasks in connection with the exercise of supplementary supervision.

(2) Národná banka Slovenska shall coordinate, in cooperation with other states’

competent supervisory authorities that are responsible for the supervision of regulated entities

included in a financial conglomerate, the exercise of supplementary supervision, and shall

stipulate the forms of cooperation in implementing the provisions of Article 49d, Article 49e,

Article 49f(3) and (5), Article 49g, Article 49l(2), and Article 51a.

(3) Information needed for the exercise of supplementary supervision, which has

already been provided to another country’s competent supervisory authority that is

responsible for the supervision of regulated persons included in a financial conglomerate,

shall be obtained from that authority at the request of Národná banka Slovenska. If the said

information cannot be obtained according to the first sentence, Národná banka Slovenska

shall be entitled to obtain it directly from the persons included in the financial conglomerate,

listed in Article 49g(2).

118

(4) For the purpose of coordinating the cooperation between Národná banka

Slovenska and other Member States’ competent supervisory authorities that are responsible

for the supervision of regulated persons included in a financial conglomerate, the exercise of

supplementary supervision shall be subject, where appropriate, to the provisions of Article

48(9) to (11).

Article 49l

(1) In exercising supplementary supervision, Národná banka Slovenska shall

cooperate with other Member States’ competent supervisory authorities that are responsible

for the supervision of regulated persons included in a financial conglomerate, even if

supplementary supervision is exercised by the competent supervisory authority of a Member

State, at least in the scope specified in paragraph 3.

(2) Národná banka Slovenska shall, at the request of another Member State’s

competent supervisory authority that is responsible for the supervision of regulated entities

included in a financial conglomerate, provide information for the supervision of regulated

entities that are part of a financial conglomerate or for the supervision of financial

conglomerates, at least in the scope specified in paragraph 3. Národná banka Slovenska shall

also provide such information on its own initiative, if the information is deemed to be

important for the supervision of financial conglomerates. Národná banka Slovenska shall be

entitled to request, from other Member States’ competent supervisory authorities that are

responsible for the supervision of regulated persons included in a financial conglomerate,

information for the purposes of supplementary supervision, at least in the scope specified in

paragraph 3, and shall also be entitled to exchange information needed for the supervision of

financial conglomerates with foreign central banks, the European System of Central Banks,

the European Central Bank, and under a separate regulation,45d

with the European Systemic

Risk Board.

(3) Cooperation and the exchange of information under paragraphs 1 and 2 concern

mainly:

(a) the legal form, management and organisational structure of a financial conglomerate,

including all regulated and non-regulated persons, non-regulated subsidiaries and

significant branches belonging to that financial conglomerate, and persons with

a qualifying holding in the entity controlling the financial conglomerate, and other

Member States’ competent supervisory authorities that are responsible for the supervision

of regulated persons included in the financial conglomerate;

(b) the strategy and specialisation of a financial conglomerate;

(c) the financial situation of a financial conglomerate, mainly the amount of own funds,

intragroup transactions, risk concentration, and the results of operations;

(d) shareholders with a qualifying holding in persons that are part of a financial conglomerate

and the statutory body members of that financial conglomerate;

(e) the organisation, risk management and internal control systems of a financial

conglomerate;

(f) procedures for collecting information from persons that are part of a financial

conglomerate, and for verifying such information;

(g) unfavourable developments in regulated person or other persons within a financial

conglomerate, which may have a serious negative impact on a bank;

45d

) Article 15 of Regulation (EU) No 1092/2010 of the European Parliament and of the Council of

24 November 2010 on European Union macro-prudential oversight of the financial system and establishing

a European Systemic Risk Board (OJ L 331, 15.12.2010).

119

(h) serious penalties and extraordinary measures adopted by Národná banka Slovenska and

the other Member States’ competent supervisory authorities that are responsible for the

supervision of regulated persons included in a financial conglomerate.

(4) Národná banka Slovenska shall discuss, with the other Member States’ competent

supervisory authorities that are responsible for the supervision of regulated persons included

in a financial conglomerate, the following matters:

(a) the issuance of a decision on prior approval under Article 28(1)(a) and (b) and

Article 9(4), where changes in the structure of shareholders or changes in the bodies of

a bank would affect the exercise of supplementary supervision;

(b) the imposition of penalties or the adoption of measures against regulated persons in

a financial conglomerate, which may also have an impact on regulated persons that are

subject to supplementary supervision by another Member State’s competent supervisory

authority that is responsible for the supervision of regulated persons included in

a financial conglomerate.

(5) Národná banka Slovenska shall not conduct negotiations under paragraph 4 where

such negotiations may threaten the adoption of decisions within the prescribed time limit or

where the imposition of penalties and measures cannot be postponed. In such cases, Národná

banka Slovenska shall, without undue delay, inform the relevant Member States’ supervisory

authorities that are responsible for the supervision of regulated persons belonging to a

financial conglomerate.

(6) In exercising supplementary supervision, Národná banka Slovenska shall be

entitled to call upon a Member State’s competent supervisory authority that is responsible for

the supervision of regulated persons included in a financial conglomerate, in the Member

State in which the parent undertaking is established, to instruct the parent undertaking to

provide information for the performance of tasks by Národná banka Slovenska under

Article 49k and to deliver this information to Národná banka Slovenska.

(7) The provisions of paragraphs1 to6 also apply to cooperation between Národná

banka Slovenska and the supervisory authorities of countries with which the European Union

has signed a cooperation agreement for the supervision of financial conglomerates.

(8) The provisions of paragraph 7 are without prejudice to the right to conclude an

agreement on the terms and conditions of supervision over financial conglomerates and on the

mutual exchange of information with the competent supervisory authority of another country

that is not a Member State, unless such agreement contradicts the rules of supplementary

supervision.

Article 49m

(1) Národná banka Slovenska shall verify, at the request of another Member State’s

competent supervisory authority that is responsible for the supervision of regulated persons

included in a financial conglomerate, any information used for the supervision of a financial

conglomerate about a person that belongs to that financial conglomerate and whose registered

office is in the territory of the Slovak Republic, or shall have this information verified by

other authorised persons. The persons authorised by the Member State’s competent

supervisory authority shall be entitled to participate in the verification by Národná banka

Slovenska or to verify the information on their own with the consent of Národná banka

Slovenska.

120

(2) Národná banka Slovenska shall be entitled to request another Member State’s

competent supervisory authority that is responsible for the supervision of regulated persons

included in a financial conglomerate, to verify the information used for the supervision of

a financial conglomerate about a person that belongs to that financial conglomerate and whose

registered office is in the territory of that Member State, or to have the information verified by

other authorised persons. Persons authorised by Národná banka Slovenska shall be entitled to

participate in the verification conducted by the competent supervisory authority of the

Member State concerned, or to verify the information on their own with the consent of the

competent supervisory authority.

Article 49n

Persons that are part of a financial conglomerate shall exchange, for the purposes of

supplementary supervision, any information they need for the discharge of obligations under

Articles 49g to 49j.

Article 49o

(1) Mixed financial holding companies as referred to in Article 49c shall prepare and

submit to Národná banka Slovenska statements, returns, and other reports containing data

needed for the exercise of supplementary supervision under Article49g(2), Article49h(1),

and Article49i(1) in a specified form or manner, at a specified time; their structure, scope,

contents, form, categorisation, time limits, manner, method and place of submission,

including the methodology of preparation shall be stipulated in a decree23

issued by Národná

banka Slovenska and promulgated in the Collection of Laws.

(2) Data and other information contained in the statements, returns, and other reports

must be comprehensible, well-arranged, and transparent; they must give a true picture of the

reported facts, and must be submitted in due time. If the submitted statements, returns, and

other reports fail to correspond to the prescribed methodology or if there are justified doubts

about their correctness or completeness, the mixed financial holding company shall submit to

Národná banka Slovenska new data and give an explanation within the time limit set by


PART TEN

CORRECTIVE MEASURES AND FINES

Article 50

(1) Where Národná banka Slovenska finds any shortcomings in the operations of a

bank or a foreign bank branch consisting in a failure to comply with the terms and conditions

stipulated in its banking authorisation or in a decision on prior approval, or with the

requirements and obligations specified in other decisions of Národná banka Slovenska

imposed on a bank or a foreign bank branch, a failure to meet the conditions stipulated in

Article 7(2), (4) and (6), and Article 8(2), (4) and (6), or a violation or circumvention of other

provisions of this Act, legally binding acts of the European Union pertaining to banking

121

activities, separate regulations,46

or other generally binding regulations governing the conduct

of banking operations, Národná banka Slovenska may, depending on the seriousness, scope,

duration, consequences, and nature of detected shortcomings:

(a) require a bank or a foreign bank branch to adopt recovery measures;

(b) require a bank or a foreign bank branch to submit special statements, returns, and reports;

(c) require a bank or a foreign bank branch to terminate an unauthorised activity;

(d) impose upon a bank or a foreign bank branch a fine of EUR 3,300 to EUR 332,000, or,

in the event of a recurrent or grave default, a fine of up to 10% of the total annual

turnover for the previous calendar year; if the bank is a subsidiary, its gross income from

the parent undertaking’s consolidated financial result is to be used as total annual

turnover for the previous calendar year;

(e) limit or suspend the conduct of certain banking activities or certain types of transactions

for a bank or a foreign bank branch;

(f) revoke the banking authorisation of a bank or a foreign bank branch for certain banking

activities;

(g) require a bank or a foreign bank branch to correct its accounting books or other records

according to the findings of Národná banka Slovenska or an auditor;

(h) require the release of a correction of incomplete, incorrect, or untrue information that

a bank or a foreign bank branch published in accordance with the disclosure requirement

stipulated by law;

(i) require the settlement of a loss from business operations using share capital, subsequent

to the use of retained earnings from previous years, funds created from profits, and

capital funds to cover the loss;

(j) place a bank or a foreign bank branch under receivership for reasons stated in Article 53;

(k) revoke the banking authorisation of a bank or a foreign bank branch for reasons stated in

Article 63;

(l) require a bank or a foreign bank branch to adopt measures to improve its risk

management system;

(m) require a bank to maintain its own funds at a level exceeding the capital requirement

stipulated by this Act in Article 29(4);

(n) require a bank to apply, for the purpose of maintaining its own funds at a level

corresponding to the capital requirement, special procedures taking into account the

impairment of its assets and expected losses on off-balance sheet items where the value

of assets or expected losses on off-balance sheet items calculated by the bank do not

correspond to the objective facts;

(o) require a bank or a foreign bank branch to reduce the level of significant risks it incurs

during the course of its activities;

(p) require a bank or a foreign bank branch to maintain its assets in the prescribed range and

in the prescribed amount;

(r) require a bank to restrict the provision of flexible remuneration to persons mentioned in

Article 23a in an amount determined as a percentage of the total remuneration paid to

persons mentioned in Article 23a, at least for one calendar year, for the purpose of

maintaining its own funds at a level specified in Article 29(4);

46

) For example, Act No 566/1992 Coll. of the National Council of the Slovak Republic, as amended; Act

No 202/1995 Coll. – the Foreign Exchange Act (and amending Act No 372/1990 Coll. on non-indictable

offences, as amended; Act No 118/1996 Coll., as amended; Act No 431/2002 Coll., as amended; Act No

510/2002 Coll., as amended; Act No 367/2000 Coll. on the prevention of money laundering and terrorist

financing (and amending certain laws), as amended; Act No 266/2005 Coll. on the protection of consumers

in respect of the distance marketing of financial services (and amending certain laws); Act No 659/2007

Coll. on the introduction of the euro in the Slovak Republic (and amending certain laws); Article 6 of Act

No 384/2011 Coll. on a special levy on selected financial institutions (and amending certain laws), as

amended by Act No 233/2012 Coll.

122

(s) require a bank to use its profits to maintain its own funds at a level exceeding the capital

requirement stipulated by this Act in Article 29(4);

(t) require a bank to release a public statement as to which bank is responsible for the

deficiency in its activities, as well as the nature of the deficiency;

(u) require a bank to discontinue, or refrain from, any activity that is not compliant with this

Act or with other regulations;

(v) require a bank to meet additional liquidity requirements.

(2) Národná banka Slovenska may impose a fine upon a member of a bank’s statutory

body or supervisory board, the chief executive officer of a foreign bank branch22

or their

deputy, general proxy, a senior employee of a bank or a foreign bank branch22

, or a member

of the statutory body, supervisory body, or a senior employee of a financial holding company

under Article 44(3) or a mixed financial holding company under Article 49c(1)(b) to (e), the

official receiver or their deputy, for any violation of the provisions of this Act, separate laws46

or other generally binding regulations governing the conduct of banking activities on an

individual basis, on a consolidated basis, and within a financial conglomerate, the bank’s

articles of association, and other internal regulations, or for any breach of conditions or

obligations imposed by a decision issued by Národná banka Slovenska, which fine may,

depending on the gravity of guilt and nature of violation, go up to twelve-times the person’s

monthly remuneration for the past year received from the bank or foreign bank branch or from

members of a consolidated group or members of a financial conglomerate to which the bank

or foreign bank branch belongs; a senior employee may be charged a fine of up to 50% of

their total remuneration for the past year received from a bank or a foreign bank branch or

from members of a consolidated or sub-consolidated group to which the bank or the foreign

bank branch belongs. If the person concerned received income from a bank or a foreign bank

branch, from members of a consolidated or sub-consolidated group, or from members of a

financial conglomerate to which the bank or foreign bank branch belongs, only for part of the

past year, the monthly average will be calculated from the person’s total remuneration for the

relevant part of the year. A bank, foreign bank, financial holding company as referred to in

Article 44(3), or a mixed financial holding company as referred to in Article 49c(1)(b) shall

dismiss without delay from their office persons who lose their trustworthiness as a result of a

lawfully imposed fine under Article 7(15)(e). Národná banka Slovenska may, for any of the

infringements mentioned in the first sentence, prohibit these persons temporarily from holding

any office in a bank or in a foreign bank branch or, in the case of a material infringement,

impose a fine of up to EUR 5,000,000.

(3) The recovery measures of a bank or of a foreign bank branch means any of the

following actions:

(a) submission of a binding recovery programme that must include:

1. a plan for the maintenance of own funds by the bank in regard to the capital

requirements;

2. a plan projecting the current and anticipated trends in the economic situation of the

bank or foreign bank branch, at least including balance sheets, profit and loss

accounts, the budget, a strategic business plan, and an analysis of profitability in

achieving the programme objectives;

3. other information that Národná banka Slovenska deems necessary;

(b) submission of an analysis of deficiencies in the bank’s activities and a binding plan,

including a schedule for the adoption of measures to comply with the provisions of this

Act, legally binding acts of the European Union pertaining to the conduct of banking

activities, separate laws46

, and other generally binding legal regulations governing the

conduct of banking activities;

123

(c) limitation or suspension of the payment of dividends,47

bonuses,48

and other shares in

profit, remuneration and non-monetary compensation to shareholders, members of the

statutory body, members of the supervisory board, and employees;

(d) limitation or suspension of salary increases for members of the statutory body, members

of the supervisory board, and all employees of the bank or foreign bank branch;

(e) introduction of daily monitoring for the financial position of the bank or foreign bank

branch;

(f) limitation or suspension of the expansion of new transactions made by the bank or

foreign bank branch; for such transactions, prior approval is required from Národná

banka Slovenska;

(g) adoption of measures to improve the risk management system;

(h) adoption of measures to prevent the transfer of risk in securitisation.

(4) Národná banka Slovenska shall require a bank to adopt recovery measures where

the bank fails to meet its obligations laid down in Articles 23 and 30 or where Národná banka

Slovenska finds latent support for securitisation on more than one occasion.

(5) The statutory body of a bank that fails to meet the obligations laid down in Article

23 or 30 shall submit to Národná banka Slovenska a binding recovery programme no later

than 30 days after becoming aware of this fact. The binding recovery programme is to be

approved by the bank’s statutory body and supervisory board. Národná banka Slovenska shall

approve or reject the binding recovery programme within ten days of the date of receipt.

(6) When the reasons cease for the use of the measure stipulated in paragraph 1(e),

Národná banka Slovenska shall give a written notice to the bank or foreign bank branch

concerned.

(7) For a breach of the provisions of Article 3, Article 4(1), and Article 28, Národná

banka Slovenska may impose a measure to eliminate and rectify the unlawful situation, as

well as a penalty of:

(a) up to 10% of the total annual net turnover recorded in the previous calendar year where

a legal person is involved; if the legal person is a subsidiary, the gross income stated in

the parent company’s consolidated financial statements shall be used;

(b) up to EUR 5,000,000 where a natural person is involved, or

(c) up to twice the amount of the benefit derived from the breach where that amount can be

determined.

(8) A fine mentioned in paragraphs 1, 2, or 7 is without prejudice to liability as

defined in separate regulations.

(9) Fines and corrective measures as referred to in paragraph 1 may be imposed

concurrently and repeatedly. A fine as referred to in paragraphs 1, 2 or 7 shall be payable

within 30 days of the effective date of the decision imposing the fine. Fines imposed with

finality shall be administered by the Government Audit Office48aaa

; for this purpose, Národná

banka Slovenska shall send the Government Audit Office a copy of its valid decision

imposing a fine. Imposed fines shall bring in revenues for the state budget of the Slovak

Republic.

47

) Article 178(1), (2), (5) and (6), Article 179(3) to (5), and Article 187(e) of the Commercial Code. 48

) Article 178(3) and (4) and Article 187(e) of the Commercial Code. 48aaa

) Article 4 of Act No 357/2015 Coll. on financial controls and audits (and amending certain laws).

Article 3(1) and (2) of Act No 374/2014 Coll. on state claims (and amending certain laws).

124

(10) Fines pursuant to paragraph 1(d), paragraphs 2 and 7, Article 51(1), Article

51a(1), or Article 82(2), or corrective measures may be imposed within three years from the

detection of shortcomings, but no later than within ten years of their occurrence. The

limitation periods mentioned in the first sentence shall be interrupted when an event causing

such interruption under a separate law48aa

occurs, and the new limitation period will begin to

lapse from the time of interruption. Shortcomings in the operation of a bank or a foreign bank

branch or other person over which supervision is exercised under this Act, specified in an on-

site inspection protocol, shall be considered detected from the date of expiry of the on-site

inspection under a separate law48a

.

(11) Národná banka Slovenska shall be entitled, even outside corrective measure or

penalty proceedings, to require a bank or a foreign bank branch to submit separate statements,

reports, and disclosures, and to discuss shortcomings in the operation of the bank or foreign

bank branch with the members of the bank’s statutory body and supervisory board, the chief

executive officer of the foreign bank branch, senior employees, and the head of the internal

control and internal audit unit, who shall give Národná banka Slovenska any requested

assistance.

(12) Národná banka Slovenska shall be entitled to require a bank or a foreign bank

branch to maintain a specified scope of assets in the prescribed amount also when this is

necessary owing to objective circumstances related to financial markets, the effect of which

may impair the stability of the financial market or disrupt its credibility.

(13) Where, on the basis of supervision exercised under Article 6(2), Národná banka

Slovenska finds that the risks to which a bank is or may be exposed are insufficiently covered

by the bank’s own funds, even after the bank has adopted the measures proposed by Národná

banka Slovenska under Article 6(2), Národná banka Slovenska may order the bank to

maintain own funds in an amount exceeding the capital requirement laid down in Article

30(4) and (5) of this Act, while taking into account the quantitative and qualitative aspects of

the system used for internal capital adequacy assessment under Article 27(3).

(14) If a bank or a foreign bank branch reports48b

to Národná banka Slovenska that the

stress-test results materially exceed the own funds requirement for the correlation trading

portfolio, Národná banka Slovenska may impose additional own funds requirements for the

coverage of specific risks to the correlation trading portfolio.

(15) Národná banka Slovenska shall publish on its official website, for a period of at

least five years,48c

information on the corrective measures and penalties imposed under

paragraphs 1, 2, 7 and Articles 51(1), 51a(1) and (2), and 52(1), against which there is no

appeal, without undue delay after the bank, foreign bank branch, mixed financial holding

company or person concerned is informed of those corrective measure or penalties.

(16) Národná banka Slovenska shall publish information in accordance with

paragraph 15 mainly on the type of the corrective measure or penalty imposed; the nature of

the breach; the business name, registered office, and identification number of the bank,

48aa) Article 19(4) of Act No 747/2004 Coll., as amended. 48a) Article 10(5) of Act No 747/2004 Coll. 48b

) Article 377(5) of Regulation (EU) No 575/2013. 48c

) Article 37(3) of Act No 747/2004 Coll., as amended by Act No 276/2009 Coll.

125

foreign bank branch or mixed financial holding company, or the first and last name,

permanent residence address, or business name, registered office, and identification number

of the person on whom a corrective measure or penalty has been imposed. Information

pursuant to the first sentence shall be published in accordance with a separate regulation48d

.

(17) Information under paragraph 16 shall be published anonymously where:

(a) the person concerned is a natural person, since personal data disclosure is unlawful;

(b) there is a justified risk to financial market stability or an examination is underway under

a separate regulation48e

;

(c) there is a justified risk that disproportionate damage may be caused to the bank or natural

person involved.

(18) Národná banka Slovenska may impose the obligation referred to in

paragraph 1(d) even if the bank’s financial position has worsened substantially, if the entity

concerned has seriously violated the applicable legal regulations or the bank’s articles of

association or failed to fulfil any of its tasks.

(19) Národná banka Slovenska shall send a copy of any decision to the Resolution

Council within two working days of the date of its issuance pursuant to Article 50. The

Resolution Council may require the bank concerned to enter into negotiations with potential

purchasers of the bank, or of any part thereof, under a separate regulation48f

.

Article 50a

Národná banka Slovenska shall preserve the anonymity of an employee, senior

employee, statutory body or supervisory board member of a bank, or the anonymity of an

employee or senior employee of a foreign bank branch, who provides Národná banka

Slovenska with any information on shortcomings in the activities of the bank or foreign bank

branch concerned in accordance with Article 50(1).

Article 51

(1) Národná banka Slovenska may impose a fine on a legal person that is part of

a consolidated group over which it exercises supervision on a consolidated basis, according to

the seriousness, scope, duration, consequences, and nature of the revealed shortcomings, in

the amount of EUR 3,300 to EUR 664,000, if the legal person:

(a) does not allow an on-site inspection;

(b) fails to supply the requested statements, returns, and other reports for the purposes of

supervision on a consolidated basis;

(c) provides incorrect, untrue, or incomplete statements, returns, and other reports, or fails to

observe the deadlines set for their delivery, or

(d) fails to observe the duty stipulated in Article 47(1).

(2) The provisions of Article 50(7) to (9) and paragraph 10, first sentence, apply to

fines as mentioned in paragraph 1.

Article 51a

48d


Act No 122/2013 Coll. on personal data protection (and amending certain laws). 48e

) For example, the Criminal Code, as amended. 48f

) Article 53 of Act No 371/2014 Coll.

126

(1) Národná banka Slovenska may impose a fine on a mixed financial holding

company or a person included in a financial conglomerate over which Národná banka

Slovenska exercises supplementary supervision, according to the seriousness, scope, duration,

consequences, and nature of the revealed shortcomings, in the amount of EUR 3,300 to

EUR 664,000, if the person concerned:

(a) does not allow an on-site inspection;

(b) fails to supply the requested statements, returns, and other reports for the purposes of

supplementary supervision;

(c) provides incorrect, untrue, or incomplete statements, returns, or other reports, or fails to

observe the deadlines set for their delivery; or

(d) fails to observe the duties stipulated in Articles 49g to49j.

(2) When the solvency of a financial conglomerate is at risk or the requirement to

maintain a sufficient amount of own funds is not observed in a financial conglomerate that is

subject to supplementary supervision, Národná banka Slovenska shall, in relation to the mixed

financial company, be entitled to:

(a) impose measures designed to ensure the recovery of the financial conglomerate

concerned in accordance with Article 50(3), or

(b) restrict or suspend the conduct of certain intragroup transactions.

(3) If a financial conglomerate includes a person that is under the supervision of

Národná banka Slovenska in accordance with Article 6(1), Národná banka Slovenska shall

also be entitled to impose a penalty under Article 50 on the basis of a notice from the relevant

Member State’s supervisory authority responsible for supervising the financial conglomerate

in which the person mentioned in Article6(1) is included.

(4) If Národná banka Slovenska imposes a penalty under Article 6(1) on a person

included in a financial conglomerate that is subject to supplementary supervision by another

Member State’s competent supervisory authority and if the imposition of such penalty has

some significance for the exercise of supplementary supervision, Národná banka Slovenska

shall report this fact to the relevant supervisory authority of the Member State concerned.

Article 52

(1) Národná banka Slovenska may suspend the exercise of the right to attend and vote

at a bank’s general meeting and the right to request the convention of an extraordinary

meeting for a person who has performed a deed in violation of Article 28(1)(a), or who has

acquired prior approval under Article 28(1)(a), on the basis of a misstatement. The exercise of

these rights may also be suspended by Národná banka Slovenska for a person whose action is

detrimental to the proper and prudent operation of the bank or where such action can

reasonably be expected in cases specified in Article 28(12).

(2) From its issuer’s register and list of shareholders, bank shall submit to Národná

banka Slovenska an extract produced on a relevant date49a

that is no later than five working

days before the date of its general meeting. The bank shall submit this extract to Národná

banka Slovenska on the date it was produced. Národná banka Slovenska shall without delay

name in writing on the extract the person whose rights mentioned in paragraph 1 are

49a)

Article 156a of the Civil Code, as amended.

127

suspended and shall deliver the extract to the bank no later than the day preceding the date of

the general meeting.

(3) A preliminary injunction mentioned in paragraph 2 shall be binding upon the

bank.

(4) A preliminary injunction mentioned in paragraph 2 is also deemed delivered when

given to a proxy authorised to represent the person concerned at the general meeting.

(5) A bank may not allow the presence at its general meeting of persons marked by

Národná banka Slovenska under paragraph 2, or persons not included in the extract submitted

by the bank under paragraph 2, or persons authorised to act on their behalf.

(6) The shares affected by a suspension of the exercise of rights under paragraph 1 are

not deemed to be shares with voting rights during the suspension of these rights. These shares

are not taken into account when a general meeting is assessed whether it has a quorum to take

decisions or when the general meeting makes decisions. The resulting increase in the share of

voting rights of other persons that are named in the extract submitted by the bank under

paragraph 2 does not require the prior approval of Národná banka Slovenska under Article

28(1)(a).

(7) When the reasons for suspending the exercise of rights under paragraph 1 cease,

Národná banka Slovenska shall lift the suspension without delay.

(8) Národná banka Slovenska shall be entitled to file a request in court to declare

invalid a decision of a bank’s general meeting owing to a violation of laws, other generally

binding regulations, decisions of Národná banka Slovenska, or the bank’s articles of

association, within three months from the date it learnt of this decision, but no later than

within a year from the date when the decision was adopted.

Article 52a


(European Banking Authority) of any sanctions it has imposed, for the purposes of

information exchange between the competent supervisory authorities via the central database

maintained by the European supervisory authority (European Banking Authority). Národná

banka Slovenska shall provide the European supervisory authority (European Banking

Authority) with any information needed to keep that central database up-to-date.

(2) Národná banka Slovenska shall use the central database referred to in paragraph 1

for the purpose of assessing the reputation of persons under this Act. In providing data from

the crime register to the competent supervisory authorities, Národná banka Slovenska shall

proceed in accordance with a separate law49aa

.

Article53

(1) Národná banka Slovenska may impose receivership upon a bank where, in regard

to the circumstances and the bank’s financial situation, the measures referred to in Article

49aa


128

65a(6) are unlikely to eliminate the deficiencies in the bank’s activities or to improve its

financial situation.

(2) The purpose of receivership of a bank is in particular:

(a) to prevent the bodies of a bank responsible for the deteriorating economic situation of the

bank from performing their functions;

(b) to eliminate the most serious shortcomings in the bank’s management and activities with

the objective of stopping further deterioration in the bank’s economic situation;

(c) to protect the deposits and other rights of the bank’s clients against damage or growing

damage;

(d) to adopt a recovery programme, if the bank’s economic recovery is feasible, including the

adoption and performance of organisational and other measures designed to gradually

stabilise the bank and restore its liquidity, mainly in cooperation with the major

shareholders of the bank.

(3) Receivership is a reorganisation measure that may impact upon the existing rights

of third persons.

(4) Národná banka Slovenska shall impose receivership if a bank’s own funds are at

a level lower than 50% of the total amount corresponding to the bank’s own funds

requirements.20a

(5) Národná banka Slovenska may impose receivership if shortcomings in the bank’s

operation put its safe functioning at risk or endanger the rights or interests of its clients

protected by law, if the results of operations for the current period and for previous periods

cause the bank a loss exceeding 30% of its share capital, or in the case of another serious

shortcoming in the bank’s operation. Národná banka Slovenska shall impose receivership in

accordance with the first sentence only if the removal or replacement of a member of the

bank’s board of directors or supervisory board has not led to the elimination of shortcomings

in the bank’s operations, which thus continue posing a risk to its safe functioning or

endangering the rights or interests of its clients protected by law, nor has it led to the

elimination of other major shortcomings in the bank’s operations or to an improvement in its

financial position consisting in a loss exceeding 30% of the bank’s share capital in its

financial results for the current period or for the previous periods.

(6) Receivership shall be introduced from the moment of delivery of a decision on

receivership to a bank; it shall have immediate effect on the bank and other persons. Through

the delivery of this decision, the information obligation of Národná banka Slovenska will be

met.

(7) From the moment of its introduction, receivership imposed on a bank shall also

apply to its branches located in other Member States and shall be effective in relation to third

persons, too. Receivership imposed on a bank branch located in another Member State shall

be conducted and its effects managed pursuant to this Act, unless provided otherwise

hereunder.

(8) Národná banka Slovenska may not place in receivership a foreign bank branch

established by a foreign bank established in another Member State. Receivership in a foreign

bank branch shall be governed, as appropriate, by the same provisions that apply to

receivership imposed on banks.

129

(9) A foreign reorganisation measure with a similar purpose and impact upon the

existing rights of third persons as the purpose and impact of receivership (hereinafter referred

to as ‘foreign reorganisation measure’) introduced in a foreign bank established in a Member

State shall, from the moment of its introduction, also apply to its branch located in the

territory of the Slovak Republic and shall also be effective in relation to third persons in the

territory of the Slovak Republic. A foreign reorganisation measure introduced in a Member

State over a foreign bank branch with a registered office outside the European Union shall,

from the moment of its introduction, also be effective vis-à-vis third persons in the territory of

the Slovak Republic. A foreign reorganisation measure introduced in a Member State shall be

implemented in the territory of the Slovak Republic and its effects managed pursuant to the

regulations of that Member State, unless this Act provides otherwise.

(10) Národná banka Slovenska shall forthwith provide for the publication of the

pronouncement of a decision on the imposition of receivership, instructions on how to file an

appeal, and the purpose of receivership in the Journal of Národná banka Slovenska, in at least

two nationwide dailies, on publicly accessible premises of the head office, and in commercial

offices of the bank placed in receivership; any persons Národná banka Slovenska asks to

disclose such data shall do so. Where receivership is imposed on a bank that has a branch

located in the territory of a Member State, Národná banka Slovenska shall forthwith provide

for the publication of the pronouncement of a decision on the imposition of receivership,

instructions on how to file an appeal, and the purpose of receivership also in the Official

Journal of the European Union and in at least two nationwide dailies of the relevant Member

State, both in Slovak and in the official language of the Member State concerned. The

publication of such data shall have no impact upon the effects of receivership.

(11) Národná banka Slovenska shall forthwith inform the relevant Member State’s

competent supervisory authority about the imposition of receivership upon a bank that has

a branch in the territory of that Member State. This information shall also comprise the

explication of effects ensuing from the imposition of receivership.

(12) If, while exercising supervision in accordance with Article 16 over a foreign

bank branch, Národná banka Slovenska reveals any reason for the introduction of a foreign

reorganisation measure in the foreign bank that has its registered office in a Member State and

to which this branch belongs, it shall report this fact to the competent supervisory authority of

the Member State concerned.

Article 54

(1) Receivership in a bank is to be conducted by an official receiver (hereinafter

referred to as ‘receiver’) and by a deputy receiver. A receiver and at most two deputy

receivers are to be appointed or recalled by Národná banka Slovenska. For the same bank, one

or more receivers may be appointed. A receiver and its deputies may be appointed for a period

of maximum one year. In exceptional situations, Národná banka Slovenska may prolong this

period, provided that the conditions of appointment are fulfilled.

(2) A certificate of the appointment of a receiver and a deputy receiver for the

conduct of receivership and of persons implementing a foreign reorganisation measure in

a foreign bank having its registered office in a Member State shall be an original of a deed of

appointment or a certificate issued by Národná banka Slovenska or by the competent

supervisory authority of the relevant Member State. Certification of translation of such

certificate into the official language of the Member State or the application of a similar

procedure thereto shall not be required.

130

(3) A receiver may be a natural or legal person as specified in paragraph 5 of this

Article.

(4) A receiver and a deputy receiver, if being a natural person, and the members of a

receiver’s or deputy receiver’s statutory body, if being a legal person, must be persons with

the same professional qualification as the bank’s supervisory board members in accordance

with Article 7(14). A receiver or a deputy receiver may not be a person who:

(a) is an employee of Národná banka Slovenska or a member of the Resolution Council or

was an employee of Národná banka Slovenska or a member of the Resolution Council at

any time in the past two years before the imposition of receivership;

(b) has been lawfully sentenced for a criminal offence committed in a managerial position or

for an intentional criminal offence;

(c) held, at any time in the past three years, office as a member of the supervisory board,

statutory body, general proxy, or a senior employee in the bank placed in receivership,

unless the receiver voluntarily resigned from this office;

(d) has a special relationship as defined in Article 35(4) with the bank placed in receivership;

(e) is a borrower or creditor of the bank placed in receivership;

(f) is an employee or member of the statutory or supervisory body of a legal person that is

a borrower or creditor of the bank placed in receivership;

(g) is a member of the statutory or supervisory body of another bank, or the chief executive

officer, or their deputy, of another branch of a foreign bank;

(h) at any time in the past year, provided the bank placed in receivership with audit services,

without expressing qualified opinion about the bank’s activities.

(5) The partners or shareholders of a receiver, being a legal person, its statutory body,

statutory body members, supervisory board members and employees through which the

receiver conducts receivership in a bank, are subject to paragraph 4.

(6) A bank’s receiver shall be authorised to manage the bank and its employees or to

cooperate with the bank’s statutory body in managing the bank and its employees. The

statutory body shall cooperate with the receiver to such extent as the receiver may deem

necessary for the exercise of its powers. The powers of a receiver are defined by this Act,

separate regulations,49b

and a contract to perform the functions of an receiver concluded under

Article 57(1), to which no separate regulation shall apply.27

Acting in the capacity of

a receiver, who is a natural person, shall be deemed to be a public office, for the performance

of which days off shall be provided under a separate regulation. The receiver shall be bound

by limitations specified in a decision of Národná banka Slovenska on the introduction of

receivership or the contract to perform the functions of a receiver.

(7) A deputy receiver shall be responsible for the sphere of activity of a bank in

receivership that is entrusted to him or her by the receiver and shall report to the receiver

when conducting receivership. The powers of a deputy receiver are defined in a contract to

perform the functions of a deputy receiver concluded with Národná banka Slovenska under

Article 57(1), to which no separate regulation shall apply.27

Acting in the capacity of a deputy

receiver, if being a natural person, is to be regarded as a public office, for the performance of

which days off are to be provided under a separate regulation. With the prior written approval

of Národná banka Slovenska, the receiver may empower in writing one of their deputies to

perform acts on behalf of the receiver, on the basis of a written power of attorney with a

49b

) For example, Article 9(1) first sentence of the Labour Code and Article 20(1) of the Civil Code.

131

signature verified in accordance with separate regulations50

; such prior approval may be

expressed directly in the contract to perform the functions of a receiver.

(8) In conducting receivership in the territory of another Member State, a receiver and

a deputy receiver shall proceed in accordance with laws and other generally binding

regulations of the Member State in the territory of which they operate, especially when

realising assets and providing information to employees.

(9) A person implementing a foreign reorganisation measure introduced in a Member

State and their deputy shall have, when implementing this foreign reorganisation measure, the

same legal status and shall be authorised to perform all the powers in the territory of the

Slovak Republic as if conducting receivership in the territory of the Member State in which

the foreign reorganisation measure has been introduced; when performing their powers,

however, they must proceed in accordance with the laws and other generally binding

regulations of the Slovak Republic, especially when realising assets and providing

information to employees.

(10) With the prior written approval of Národná banka Slovenska, a receiver

conducting receivership shall be entitled, with the aim of accelerating the solution of serious

problems in the bank in receivership, to hire professional advisors; such prior approval may

be expressed directly in the contract to perform the functions of a receiver. A professional

advisor may be hired exclusively for tasks for the performance of which they have the

necessary professional qualification and experience. A professional advisor may not be

a person who under paragraph 4 may not be a receiver.

(11) The office of a receiver and their deputies shall terminate on the date when the

receivership ends, the period for which they were appointed expires, or on the day of their

dismissal from office. Národná banka Slovenska shall dismiss a receiver or a deputy receiver

if, in connection with receivership, they violate this Act or other generally binding legal

regulations, or if there are reasons for their dismissal as specified in the contract to perform

the functions of a receiver or deputy receiver.

Article 55

(1) Where a bank is placed in receivership, the performance of functions shall be

suspended for all bodies and senior employees of that bank22

, except for the general meeting

of shareholders, and the powers of the bank’s statutory body and supervisory board shall be

transferred to the receiver. During this time, the term of office of members of the statutory

body and the supervisory board shall not lapse. This shall not preclude the right of the

statutory body to appeal against the decision to impose receivership. In performing the duties

of the statutory body and the supervisory board, the receiver shall not be subject to any

separate regulations1.

(2) A receiver is authorised to convene and chair a general meeting of a bank, to set

the agenda thereof, and to submit proposals. A general meeting may be convened and its

agenda set only with the prior approval of Národná banka Slovenska.

50

) Act No 323/1992 Coll. on notaries and notarial activities (the Notarial Code), as amended.

Article 35(2) of Act No 233/1995 Coll. of the National Council of the Slovak Republic, as amended by Act

No 585/2006 Coll.

Act No 599/2001 Coll. on the certification of documents and signatures by district authorities and

municipalities.

132

(3) A receiver shall be entitled to take measures needed to restore the stability and

liquidity of a bank, in particular to dispose of its accounts receivable and other assets,

including the sale of a branch or another organisational unit of the bank as part of the bank’s

business or the bank’s entire business for a reasonable price, to close down a branch or

another organisational unit of the bank, or to discontinue their operations; the foregoing is

without prejudice to the provisions of Article 28(1).

(4) A receiver shall, no later than 30 days after the imposition of receivership, submit

to Národná banka Slovenska a recovery programme for the bank placed in receivership, or

propose another solution for the situation in the bank.

(5) A receiver may, with the prior approval of Národná banka Slovenska and the

Resolution Council, put forward a motion for bankruptcy proceedings52

if a bank becomes

insolvent.24aa

(6) A receiver may submit a proposal to Národná banka Slovenska for the revocation

of a banking authorisation if they find any of the facts stated in Article 63.

(7) The provisions of paragraphs 1 to 6 shall not apply where the receiver’s powers as

specified in Article 54(6) consist in cooperation with the statutory body in the bank’s

management.

Article 56

(1) Receivers, deputy receivers, and invited professional advisors shall perform their

duties with due professional care and shall be liable for any damage caused by their activity.

Receivers and deputy receivers shall regularly inform Národná banka Slovenska of the steps

they have taken in the course of receivership. Národná banka Slovenska may require receivers

to submit regular reports on the financial positions of banks in receivership. Such reports shall

be submitted no later than two weeks before the end of receivership.

(2) Receivers, deputy receivers, and invited professional advisors may not misuse the

information they acquire while conducting receivership in their favour or in favour of other

persons, and may not handle a bank’s assets in their favour or in favour of close persons.30

(3) Receivers, deputy receivers, and invited professional advisors shall keep

confidential any facts associated with the conduct of receivership in relation to all persons,

except for Národná banka Slovenska, in connection with the performance of their tasks under

this Act or a separate regulation8; the confidentiality obligation shall remain in effect after

they complete their tasks in connection with the receivership. The foregoing is without

prejudice to the provisions of Article 91(2) to (7), Article 92(1) to (7), and Article 93.

Article 57

(1) Národná banka Slovenska shall conclude a contract with a receiver to perform the

tasks of a receiver, which shall specify in detail the receiver’s rights and duties. It shall also

define the receiver’s liability for any damage caused in conjunction with the performance of

these tasks. Národná banka Slovenska shall conclude a contract with a deputy receiver to

52

) Articles 3 to 107 and Articles 176 to 195 of Act No 7/2005 Coll., as amended.

133

perform the tasks of a deputy receiver, which shall specify in detail the deputy receiver’s

rights and duties. It shall also define the deputy receiver’s liability for any damage caused in

connection with the performance of these tasks.

(2) A receiver shall invite professional advisors under Article 54(10) on a contractual

basis, in accordance with the terms and conditions approved by Národná banka Slovenska.

(3) The remuneration due to the receiver and deputy receiver for their office shall be

determined by Národná banka Slovenska.

(4) Expenses related to the conduct of receivership, including the remuneration of the

receiver, deputy receiver, and professional advisors shall be covered by the bank placed in

receivership.

Article 58

(1) Members of the statutory body, members of the supervisory board, senior

employees, and the head of the internal control and internal audit unit shall, at the request of

a receiver, cooperate with the receiver, in particular to provide any document and material

requested by the receiver in connection with the conduct of receivership.

(2) A receiver shall be entitled to immediately terminate an employment contract,

give a dismissal notice, or transfer to another position27

a senior employee or the head of the

internal control and internal audit unit. This shall not apply where the receiver’s powers as

specified in Article 54(6) consist in cooperation with the statutory body in the bank’s

management.

(3) In a bank placed in receivership, the members of the bank’s statutory body and

supervisory board may not receive any severance pay or any benefits upon termination of

their membership in these bodies provided for in contracts made between the bank and the

statutory body members or supervisory board members, or stipulated by the bank’s internal

regulations.

Article59

(1) The effects of receivership imposed upon a bank having a branch in another

Member State, if concerned are:

(a) labour contracts and labour-law relations shall be governed by the legal system of the

Member State pertaining to the labour contract;

(b) purchase contracts and lease contracts relating to real property shall be governed by the

legal system of the Member State in the territory of which the real property is located;

(c) rights relating to real property, a ship or an airplane, that must be recorded in the real

estate register or in another public register, shall be governed by the legal system of the

Member State in the territory of which the relevant public register is kept; this shall

equally apply to legal acts carried out after receivership has been imposed, in respect of

real property, a ship or an airplane, and the associated rights, required to be entered in

a public register or another similar register kept in the Member State concerned;

(d) ownership rights or other rights to investment instruments37a

that must be entered in

a public register of securities or another similar register, kept or located in a Member

State, shall be governed by the legal system of the Member State in the territory of which

the relevant public register or other similar register is kept; this shall equally apply to

134

legal acts carried out upon the imposition of receivership, relating to the financial

instruments and the associated rights that are required to be entered in a public register or

another similar register kept in the Member State concerned;

(e) contracts on settlement or other similar agreements, the purpose of which is to

compensate or change the overall difference between the mutual claims and liabilities of

contracting parties into a single summary mutual claim or liability for these contracting

parties; purchase and repurchase agreements, and contracts for stock exchange

transactions, shall be governed by the legal system applying to these contracts.

(2) For a period of six months from the imposition of receivership, no assignment of

claims against the bank in receivership or claim set-offs between the bank and other persons

shall be permitted, except for cases where the legal system of another Member State in which

the creditor’s residence or registered office is located allows for the assignment of claims and

claim set-offs even during the introduction of a reorganisation measure.

(3) A receiver may challenge a legal act53

carried out in the past three years prior to

the imposition of receivership with the intention of harming the bank or its creditors, if such

intention was known to the bank; this shall not apply if the counterparty can document that,

despite due care, it could not be aware of the bank’s intention to harm its creditors.

(4) A receiver may also challenge a legal act53

inflicting damage on a bank, carried

out in the past three years prior to the imposition of receivership between the bank and

a person in a special relationship with the bank.

(5) The imposition of receivership or of a foreign reorganisation measure in

a Member State shall not affect the real rights of creditors or third persons in relation to assets

belonging to a bank or a foreign bank, which, at the time when receivership or a foreign

reorganisation measure is introduced, are located in the territory of another Member State.

(6) The imposition of receivership on a bank purchasing an asset or of a foreign

reorganisation measure in a foreign bank purchasing an asset shall not affect the entitlement

of the seller to maintain the ownership, if, at the time when receivership or a foreign

reorganisation measure is introduced in a Member State, this asset is located in the territory of

another Member State.

(7) The imposition of receivership on a bank selling an asset, or of a foreign

reorganisation measure in a foreign bank selling an asset, shall not constitute grounds for

cancellation or termination of the sale of an already delivered asset and shall not prevent the

buyer from acquiring the ownership, if, at the time when receivership or a foreign

reorganisation measure is introduced, the asset under sale is located in the territory of another

Member State

(8) The introduction of receivership or of a foreign reorganisation measure in

a Member State and the provisions of paragraphs 2, 5, 6 and 7 shall not be an obstacle to

filing a motion with the court to determine the nullity of legal acts or invalidity of disputable

legal acts that are detrimental to creditors, a motion to determine the right to withdraw from

legal acts, or a motion to pronounce the nullity of legal acts detrimental to creditors, or a

motion to impose a non-deferrable measure concerning an obligation to refrain from the

performance of legal acts detrimental to creditors of a bank placed in receivership or creditors

53

) Articles 42a and 42b of the Civil Code.

135

of a foreign bank in which a foreign reorganisation measure has been introduced. If, before

the introduction of receivership, court proceedings have been commenced in a Member State

concerning an asset or a right withdrawn from a bank, such proceedings shall be governed,

even after the introduction of receivership, by the legal system of the Member State in which

the proceedings has been commenced and conducted.

(9) The imposition of receivership on a bank is without prejudice to the validity,

effectiveness, and exercise of rights under a contract on final settlement of gains and losses or

a contract on financial collateral, provided that such contract meets the requirements of

separate regulations53a

.

Article 60

(1) Introduction of receivership, information on the receiver and their deputy, and the

end of receivership and associated changes shall be recorded in the Commercial Register1.

A proposal to record the introduction of receivership shall be submitted by Národná banka

Slovenska; the submission of such proposal shall not be subject to any separate regulation.54

(2) The following information shall be recorded in the Commercial Register:

(a) the first name, last name, permanent residence, and birth registration number of the

receiver and deputy receiver, if they are natural persons; and

(b) the business name, registered office, and identification number of the receiver and deputy

receiver, if they are legal persons.

(3) A receiver may propose that receivership be entered in the Commercial Register

or a similar public register kept in another Member State within the territory of which a bank

branch placed in receivership is located, provided that such entry is allowed by the legal

system of the relevant Member State. A receiver who is authorised to cooperate with the

statutory body of a bank only in managing its staff and business shall not be required to be

entered in the Commercial Register.

(4) The introduction of a foreign reorganisation measure in a foreign bank having its

registered office in a Member State and a branch in the territory of the Slovak Republic, its

termination and changes related thereto shall be entered into the Commercial Register.

A motion for entry shall be filed by the competent supervisory authority of the Member State

concerned or by the person implementing the foreign reorganisation measure. Also the first

name, last name, and address of residence of the person in charge of the foreign

reorganisation measure shall be entered into the Commercial Register.

Article 61

(1) During receivership, Národná banka Slovenska may provide financial assistance

to a bank in order to overcome a temporary lack of liquidity. A loan by which such financial

assistance is provided must be adequately secured by assets serving as collateral; no bank may

be favoured or disfavoured in the provision of such financial assistance.

53a

) Article 151me of the Civil Code, as amended.

Articles 53a to 53e of Act No 566/2001 Coll., as amended.

Article 180 of Act No 7/2005 Coll. 54

) Article 5b of Act No 530/2003 Coll. on the Commercial Register (and amending certain laws), as amended

by Act No 136/2010 Coll.

136

(2) Claims for the repayment of financial assistance provided in accordance with

paragraph 1 shall have priority over the bank’s other liabilities, except for such other

liabilities that have priority in the satisfaction of claims under special regulations55

.

Article 62

(1) Receivership shall end:

(a) upon delivery of a decision by Národná banka Slovenska to end receivership, when

reasons for its continuation cease;

(b) when the bankruptcy of the bank in receivership is declared;

(c) upon expiry of twelve months from the imposition of receivership; this shall not apply

where Národná banka Slovenska assesses that, upon expiry of the twelve-month period,

the reasons for receivership still persist; or

(d) by revocation or expiry of the banking authorisation.

(2) The end of receivership under paragraph 1 shall be promulgated without delay by

Národná banka Slovenska in at least one nationwide daily and on the publicly accessible

premises of the bank in receivership and in all its commercial offices. Persons asked by

Národná banka Slovenska to promulgate this announcement have the duty to do so.

(3) A bank whose receivership ends shall convene an extraordinary general meeting

without delay so that it is held within 30 days of the end of receivership. The bank shall

include in the agenda of the extraordinary general meeting the dismissal of the present and the

election of new members of the bank’s statutory body and supervisory board; the new

statutory body and supervisory board members must comply with the criteria stipulated in

Article 7(2)(e).

Article 62a


supervision on a consolidated basis shall notify the European supervisory authority (European

Banking Authority) and the College members of its intention to issue a decision to impose

receivership upon a bank that is a parent undertaking and shall discuss the matter with the

College. Národná banka Slovenska shall take into account the impact of receivership on the

members of the group concerned, established in other Member States. Národná banka

Slovenska shall inform the College members and the European supervisory authority

(European Banking Authority) of the issuance of such decision.


supervision on a consolidated basis is notified that another Member State’s supervisory

authority exercising supervision over a member of a group intends to issue a decision in

respect of a foreign reorganisation measure, Národná banka Slovenska may assess the

probable impact of that decision on the group or on its members from other Member States

and report its comments to the competent supervisory authorities of those Member States

within three days.


(European Banking Authority) of its intention to issue a decision to impose receivership upon

a bank that is part of a group and shall discuss the matter with the competent supervisory

authority exercising supervision over that group on a consolidated basis. After notifying its

intention to impose receivership and discussing the matter with the College members,

55

) For example, Articles 70, 87, and 94 to 101 of Act No 7/2005 Coll., as amended.

137

Národná banka Slovenska shall decide whether to impose receivership pursuant to Article

53(1) and (2). Národná banka Slovenska shall inform the College members and the European

supervisory authority (European Banking Authority) of the issuance of such decision.


supervision on a consolidated basis is notified pursuant to paragraph 2 that one or more

supervisory authorities of other Member States exercising supervision over the members of a

group intend to issue a decision in respect of a foreign reorganisation measure, Národná banka

Slovenska shall, working closely with these supervisory authorities, assess as to whether it

would be more appropriate to appoint one receiver for all the members of that group, within

five days of the date of notification pursuant to paragraph 1. If Národná banka Slovenska fails

to reach a joint decision with the supervisory authorities within this time limit, Národná banka

Slovenska shall decide to impose receivership upon a group member on its own. If, within the

time limit specified in the first sentence, any of the supervisory authorities requests assistance

from the European supervisory authority (European Banking Authority) to reach an

agreement under a separate regulation19

, Národná banka Slovenska as a supervisory authority

responsible for exercising supervision on a consolidated basis shall decide in the matter in

accordance with the decision taken by the European supervisory authority (European Banking

Authority). If the European supervisory authority (European Banking Authority) fails to issue

such decision within three days of the delivery date of the request for assistance, Národná

banka Slovenska shall decide in respect of the imposition of receivership on its own. Národná

banka Slovenska shall inform the College members of its decision to impose receivership.

(5) If Národná banka Slovenska disagrees with the competent supervisory authority’s

intention to issue a decision in respect of a foreign reorganisation measure in relation to

a parent undertaking that is part of a group, along with a banking subsidiary that is supervised

by Národná banka Slovenska, or in relation to a subsidiary established in another Member

State and belonging to a group supervised by Národná banka Slovenska or if no joint decision

is reached, Národná banka Slovenska may request assistance from the European supervisory

authority (European Banking Authority) under a separate regulation19

.

Article 63

(1) Národná banka Slovenska shall revoke a banking authorisation where:

(a) a bank’s own funds fall below the share capital limit specified in Article 7(2)(a);

(b) a bank maintains its own funds at a level lower than 25% of the sum of values

corresponding to the bank’s own funds requirements;20a

(c) a bank or a foreign bank branch does not start providing services under Article 2(2)

introductory sentence within 12 months after its banking authorisation enters into force,

or ceases to provide services for a period of 12 months;

(d) a bank or a foreign bank branch has acquired its banking authorisation on the basis of any

misstatement in its authorisation application;

(e) a bank or a foreign bank branch is unable, for a period of at least 30 days, to pay its due

liabilities or has been declared unable to repay deposits under a separate regulation32

;

(f) in the case of a foreign bank branch, the parent bank has lost its authorisation to operate

as a bank in its home country.

(g) a bank or a foreign bank branch violates the provisions of Article 7(6) and (7), Article

8(6) and (7), and Article 28(5), (8) and (9).

(2) Národná banka Slovenska may revoke a banking authorisation if serious

shortcomings occur in the operation of a bank or a foreign bank branch, and in case of failure

to observe the requirements regarding the business activities of banks and branches of foreign

banks, if:

138

(a) a bank suffers a loss exceeding 50% of its share capital in single year, or 10% per year in

three consecutive years;

(b) a bank, branch of a foreign bank, or a foreign bank, either in part or in full, prevents

depositors from disposing of their deposits in the bank or foreign bank branch without the

prior approval of Národná banka Slovenska or without a decision made under a separate

regulation56

;

(c) a bank or a foreign bank branch fails to meet the obligations laid down in a separate

regulation57

;

(d) a bank or a foreign bank branch fails to meet the terms and conditions for the

commencement of its activities within the time limit specified in its banking

authorisation;

(e) a bank fails to comply with the terms of Article 7(2), or a foreign bank branch fails to

comply with the terms of Article 8(2);

(f) a bank or a foreign bank branch has changed its registered office without the prior

approval of Národná banka Slovenska;

(g) a bank or a foreign bank branch repeatedly or after the imposition of a disciplinary fine

mars the exercise of supervision;

(h) sanctions imposed under this Act or a separate law89

have not led to the correction of

shortcomings found.

Article 64

(1) A banking authorisation shall expire:

(a) for a bank, on the date of its dissolution for reasons other than the revocation of its

banking authorisation;

(b) for a bank, on the date of declaration of its bankruptcy under a separate regulation58

;

(c) for a foreign bank branch, on the date of declaration of bankruptcy of the foreign bank or

on the day the foreign bank is dissolved for reasons other than the revocation of its

banking authorisation;

(d) for a bank or a foreign bank branch, on the date it returns its banking authorisation; such

authorisation may only be returned in writing with prior approval as stipulated in Article

28(1)(b);

(e) if a bank or a foreign bank branch has not filed a proposal for entry in the Commercial

Register under Article 9(6);

(f) on the date a bank or a foreign bank branch is sold;28

(g) for a foreign bank branch, on the date its operation is discontinued by the foreign bank;

(h) for a bank or a foreign bank branch, for those banking activities for which a special

authorisation as mentioned in Article 2(4) has expired.

(2) A bank, foreign bank, or branch of a foreign bank shall notify Národná banka

Slovenska in writing of any facts mentioned in paragraph 1(a), (b), (c), (d), (e), and (g), within

30 days of their occurrence.

Article 65

56

) Article 8(3) and (6) of Act No 118/1996 Coll. of the National Council of the Slovak Republic, as amended. 57

) Articles 6 and 7, and Article 12(4), (5) and (7) of Act No 118/1996 Coll. of the National Council of the

Slovak Republic, as amended. Article 98(2)(b) of Act No 371/2014 Coll. 58

) Act No 328/1991 Coll. on bankruptcy and composition, as amended.


139

(1) Following the delivery of a decision to revoke a banking authorisation or the

expiry of a banking authorisation, Národná banka Slovenska shall forthwith discontinue, for

a legal person whose authorisation expired or was revoked, the provision of payment and

settlement services under Article 2(13).

(2) From the delivery of a decision to revoke a banking authorisation or from the day

on which a banking authorisation expires, the legal person mentioned in paragraph 1 may not

accept deposits or provide loans, nor perform activities other than those necessary to settle its

outstanding claims and liabilities; such a legal person shall make payments to settle its

existing claims and liabilities through an account established in another bank.

(3) A legal person whose banking authorisation has been revoked, or has expired,

shall conduct activities under paragraph 2 as a bank or a foreign bank branch under this Act

until its claims and liabilities are settled. The duty to submit accounting statements, statistical

reports, and prudent banking reports shall not apply to such a legal person.

(4) Within 30 days after the entry into force of a decision to revoke a banking

authorisation, Národná banka Slovenska shall send the decision for publication in the

Commercial Bulletin24c

.

(5) A valid decision to revoke a foreign bank’s authorisation to conduct banking

activities through a branch shall be reported by Národná banka Slovenska to the competent

supervisory authority of the country in which the foreign bank has its registered office. If

a decision is issued to revoke a banking authorisation of a legal person that has a branch

abroad, Národná banka Slovenska shall report this fact to the competent supervisory authority

of the country in which the legal person has its branch.

(6) The revocation of a banking authorisation shall be recorded in the Commercial

Register.1 Within 15 days from the effective date of a decision to revoke a banking

authorisation, Národná banka Slovenska shall send a proposal to register this fact to the court

keeping the Commercial Register; the submission of such proposal shall not be subject to any

separate regulation54

.

(7) As soon as a decision to revoke a banking authorisation enters into force, Národná

banka Slovenska shall forthwith file a proposal to the court keeping the Commercial Register

to dissolve and liquidate the bank and to appoint a liquidator. Before deciding in the matter of

dissolution, the court may not apply a procedure under a separate regulation60

.

(8) Národná banka Slovenska shall discontinue the proceedings to revoke a banking

authorisation on the basis of a decision to declare bankruptcy under a separate regulation58

.

Article 65a

Early intervention measures

(1) If Národná banka Slovenska finds deficiencies in a bank’s activities consisting in

non-compliance with, or evasion of, the provisions of this Act, the binding legal acts of the

European Union governing the performance of banking activities or other generally binding

legal regulations pertaining to banking activities, or if Národná banka Slovenska has good

24c

) Article 1(1) of Act No 1/1993 Coll. on the Collection of Laws of the Slovak Republic, as amended. 60

) Article 68(7) of the Commercial Code.

140

reasons to suspect that a deficiency in a bank’s activities may occur in the near future owing

to its deteriorating financial situation, Národná banka Slovenska may impose an early

intervention measure on that bank in the form of one of the following obligations:

(a) to implement one or more measures from its recovery plan or to update that plan and

implement one of more measures from the updated recovery plan;

(b) to carry out an analysis of its situation, to propose measures for the problems identified,

and to draw up a plan for their implementation, including a schedule;

(c) to convene a general meeting and to set its agenda according to the recommendations of

Národná banka Slovenska; if the bank fails to convene a general meeting, Národná banka

Slovenska may convene a general meeting and to set its agenda in accordance with the

relevant provisions of a separate law1;

(d) to remove a member of the board of directors or of the supervisory board, the authorised

representative or a senior employee failing to meet the requirements laid down in

Article 7(14) and (15) and in Article 25;

(e) to set an agenda for negotiations with the bank’s creditors about liability restructuring;

(f) to make changes in the bank’s business strategy;

(g) to make changes in the bank’s organisational structure and in the conduct of banking

activities; or

(h) to submit to the Resolution Council any information that is needed for updating the

bank’s resolution plan, for the preparation of resolution proceedings, and for the valuation

of the bank’s assets and liabilities under a separate regulation60a

.

(2) In assessing whether a bank’s financial situation is deteriorating as described in

paragraph 1, Národná banka Slovenska shall examine the bank’s situation in terms of its

liquidity risk exposure, leverage ratio, volume of non-performing loans, concentration risk

exposure and capital adequacy ratio, which exceeds the own-funds requirement by less than

1.5 percentage points.

(3) Národná banka Slovenska shall set a time limit for the implementation of early

intervention measures as listed in paragraph 1, taking into account the circumstances and the

gravity of the deficiency in the bank’s activities, as well as any reasonable grounds for

suspicion that a deficiency may occur in the near future.

(4) The application of early intervention measures as listed in paragraph 1 is without

prejudice to the provisions of Article 50.

(5) The application of early intervention measures in relation to a bank that is part of a

consolidated unit is subject to the provisions of Article 62a, as appropriate.

(6) If a bank’s financial situation is rapidly deteriorating or Národná banka Slovenska

finds major deficiencies in its activities but the early intervention measures listed in

paragraph 1 fail to remedy the situation, Národná banka Slovenska may remove a member of

the bank’s board of directors, supervisory board or a senior employee.

(7) The application of the procedure described in paragraph 6 is without prejudice to

the provisions of Article 50.

(8) An early intervention measure may be imposed within two years of the date when

deficiencies are identified or a suspicion arises that a deficiency may occur in the near future,

60a

) Article 51 of Act No 371/2014 Coll., as amended by Act No 437/2015 Coll.

141

but no later than ten years from its occurrence. The same time limits are to be applied when a

person is removed from office pursuant to paragraph 6. The limitation periods mentioned in

the first and second sentences are to be interrupted when an event leading to such interruption

under a separate regulation48aa

occurs. Subsequently, a new limitation period will begin to

lapse from the time of interruption. Deficiencies in a bank’s activities are to be considered

detected from the date when the relevant on-site inspection is completed in accordance with

a separate regulation48a

.

(9) A decision to impose an early intervention measure is executable upon its

delivery. It is possible to lodge an appeal against such decision under a separate regulation60b

.

(10) The disclosure of information about an early intervention measure or about a

person’s removal from office under paragraph 6 is subject to the provisions of Article 50(15)

to (17).

(11) The early intervention measures listed in paragraph 1 are subject to the

provisions of a separate regulation60c

.

PART ELEVEN

LIQUIDATION OF A BANK

Article66

(1) When a bank is wound up by liquidation, only Národná banka Slovenska is

entitled to file a proposal to appoint and dismiss a liquidator. The filing of such proposal shall

not be subject to a separate regulation54

.

(2) A liquidator may not be a person who has or had a special relationship with the

bank, who is or was at any time in the last five years an auditor of the bank, or was engaged in

its audit in any way, without expressing a qualified opinion on the bank’s operations.

(3) Národná banka Slovenska shall set the liquidator’s remuneration, taking into

account the range of their activities, and it shall also determine the due date for such

remuneration.

(4) Persons involved in the liquidation of a legal person whose banking authorisation

has been revoked, or has expired, shall keep confidential any facts associated with the conduct

of liquidation vis-à-vis all persons except for Národná banka Slovenska in connection with

the performance of its tasks under this Act or under a separate law8, even upon the termination

of liquidation; the provisions of Articles 91 to 93a shall not be prejudiced thereby.

(5) A liquidator shall forthwith submit to Národná banka Slovenska accounting

statements and documents processed in the course of liquidation under a separate regulation1

and other supporting documentation requested by Národná banka Slovenska in order to

review the liquidator’s activity and the progress of liquidation.

60b

) Articles 29, 30 and 32 of Act No 747/2004 Coll. 60c

) Article 10 of Act No 371/2014 Coll., as amended by Act No 437/2015 Coll.

142

(6) A liquidator shall enforce the surrender of any consideration paid according to

invalid or disputable legal acts which harmed the bank or its creditors. The liquidator shall

also perform other activities necessary for the purposes of liquidation of this legal person.

Such activities may only be performed with the approval of Národná banka Slovenska. The

provisions of Articles 94 to 114 or other generally binding regulations on administrative

proceedings83

shall not apply to the granting of such approval.

(7) A liquidator shall publish the pronouncement of a decision on the liquidation of

a legal person whose banking authorisation has been revoked, or has expired, in the Official

Journal of the European Union and at least two nationwide dailies in each Member State

where a branch of this legal person is located, namely in the Slovak language and the official

language of the relevant Member State.

(8) The provisions of paragraphs 1 to 7 shall likewise apply to the liquidation of

a foreign bank branch having its registered office outside the European Union.

(9) The provisions of Article 54(2) and Article 59(1), (2) and (5) to (8) shall equally

apply to the liquidation of a legal person whose banking authorisation has been revoked or

has expired, including its branch located in the territory of another Member State, to the

liquidation of a foreign bank branch having its registered office outside the European Union,

as well as to the liquidator’s procedures.

PART TWELVE

MORTGAGE BANKING

Article 67

(1) For the purposes of this Act, ‘mortgage transaction’ means:

(a) the provision of mortgage loans and the related issuance of mortgage bonds;61

(b) the provision of municipal loans and the related issuance of municipal bonds by a bank.62

(2) Mortgage transactions may be effected in euro or in a foreign currency.

(3) In case of transactions made in a foreign currency, the exchange rate risk shall be

borne by the bank or branch of a foreign bank conducting mortgage transactions (hereinafter

referred to as ‘mortgage bank’). A mortgage bank shall adopt measures to prevent exchange

rate risks arising from the coverage of mortgage bonds or municipal bonds by assets under

mortgage loans and municipal loans.

(4) The terms and conditions of mortgage lending to consumers are laid down in the

general law on housing loans62a

, unless they are set out in paragraphs 1 to 3 and in Articles 68

to 88 of this Act.

Article 68

A mortgage loan is a loan with a maturity of at least four years and a maximum of

thirty years, secured by a security interest established in any domestic real property, including

61

) Article 14 of Act No 530/1990 Coll., as amended. 62

) Article 20(1)(a) of Act No 530/1990 Coll., as amended. 62a

) Act No 90/2016 Coll. on housing loans (and amending certain laws).

143

property under construction, and financed, up to at least 90% unless this Act provides

otherwise, through the issuance and sale of mortgage bonds by a mortgage bank under


, which mortgage banks provide for the following purposes:

(a) acquisition of domestic real property or any part thereof;

(b) construction or modification of existing buildings or structures;63

(c) maintenance of domestic real properties; or

(d) repayment of an outstanding mortgage loan drawn for any of the purposes mentioned in

subparagraphs (a) to (c);

(e) repayment of an outstanding loan drawn for any of the purposes mentioned in

subparagraphs (a) to (c), other than a mortgage loan.

Article 69

A municipal loan is a loan with a maturity of at least four years and a maximum of

thirty years, secured by a security interest established in a real property owned by

a municipality or a higher territorial unit, and financed, up to at least 90% unless this Act

provides otherwise, through the issuance and sale of municipal bonds under a separate

regulation62

, which banks provide for the acquisition of any domestic real property,

construction or modification of existing buildings or structures,63

maintenance of domestic

real properties, buildings or structures with the objective of using them for public service

purposes.

Article 70

A mortgage bank may deposit its temporarily unused funds raised in mortgage

transactions in a bank or a foreign bank branch. Furthermore, it may use these funds to

purchase:

(a) mortgage bonds issued by another mortgage bank;

(b) municipal bonds62

issued by another mortgage bank;

(c) central bank bills issued by Národná banka Slovenska;

(d) government bonds;64

(e) Treasury bills.

Article 71

(1) The issuance and the elements of mortgage bonds and municipal bonds shall be

governed by a separate regulation13

. Národná banka Slovenska may stipulate for a mortgage

bank in its authorisation to conduct mortgage transactions special terms and conditions for

financing mortgage and municipal loans for a maximum period of two years after such

authorisation is granted.

(2) Národná banka Slovenska may, in its decision issued on the basis of a mortgage

bank’s application, for reasons worthy of special attention, for a period of maximum two

years, stipulate special conditions for financing mortgage and municipal loans up to at least

70%, through the issuance or sale of mortgage bonds by a mortgage bank under a separate

regulation61

or through the issuance and sale of municipal bonds by a bank under a separate

regulation62

, even repeatedly. A reason worthy of special attention is, in particular, an attempt

to maintain the stability of the financial sector.

63

) Article 139b(4) of Act No 50/1976 Coll. on territorial planning and construction order (the Building Act),

as amended by Act No 237/2000 Coll. 64

) Article 18 of Act No 530/1990 Coll., as amended.

144

Article 72

(1) Mortgage bonds and municipal bonds issued may be duly secured only by

a mortgage bank’s claims from mortgage and municipal loans which are secured by a security

interest in real property under Article 74 and which do not exceed 70% of the value of

pledged real property in accordance with Article 73.

(2) Mortgage and municipal loans going beyond the limit set in paragraph 1 may only

be granted on condition that the total amount of claims of a mortgage bank overrunning the

limit does not exceed 10% of the total amount of outstanding mortgage and municipal loans.

(3) Assets used to secure the nominal value of issued mortgage bonds and municipal

bonds, including security interest in real property under Article 74, may not be pledged by the

mortgage bank, nor otherwise used to guarantee its liabilities.

(4) Mortgage bond owners shall have pre-emptive security right to assets used to

secure issued mortgage bonds, including security interest in real property under Article 74,

and municipal bond owners shall have pre-emptive security right to assets used to secure

issued municipal bonds, including security interest in real property under Article 74; this

security right in a procedure under this Act or separate regulations64a

shall secure the

receivables of mortgage bond owners and the receivables of municipal bonds owners from the

mortgage bank for the payment of nominal values and yields of mortgage bonds and

municipal bonds.

Article 73

(1) For the purposes of this Act, the value of real property shall be determined by

a mortgage bank on the basis of an overall assessment of the real property concerned. In

determining this value, the mortgage bank may only take into account the permanent features

of the real property and the benefits that can be derived by the owner from the real property in

the long run. For real property burdened by a security interest or transfer restrictions in

accordance with Article 74(2), a mortgage bank shall lower the value of this real property by

the amount of claims guaranteed by such security interest or transfer restriction.

(2) A mortgage bank shall only be bound by its own real property valuation.

Article 74

(1) A security interest in a mortgage bank’s claims from mortgage loans or municipal

loans shall be established through its entry into the real estate register under a separate

regulation65

on the basis of a proposal of the mortgage bank and the owner of the real

property. The mortgage bank shall have the status of a mortgagee.

(2) A mortgage loan or a municipal loan may not be secured with a security interest in

a real property in which another security interest has already been established and is still

outstanding, or which is subject to a real property transfer restriction, except for security

64a

) For example, Article 8, Article 28(2), and Articles 69 and 176 to 196 of Act No 7/2005 Coll., as amended. 65

) Act No 162/1995 Coll. of the National Council of the Slovak Republic on the real estate register and on the

registration of ownership rights and other rights to real estate (the Cadastre Law), as amended.

145

interest and transfer restrictions established under a separate regulation,66

and a security

interest established in favour of the same mortgage bank in order to secure another mortgage

loan or municipal loan it has provided, security interests established in favour of a home

savings bank or the State Housing Development Fund, and security interests established in

order to secure the fulfilment of claims resulting from transfers of apartments or non-

residential premises for a regulated price under a separate regulation.66b

Until the expiration of

this security interest, a mortgage bank may not agree under a separate regulation66a

or allow

for the entry of a security interest which has already been entered in the real estate register in

the first order or in any other order decisive in terms of satisfaction of security interests,

except for the security interests specified in the first sentence, and which is to secure the

claims of the mortgage bank from a mortgage loan or a municipal loan.

(3) Real property shall not be deemed encumbered by a security interest or transfer

restriction where a claim secured by another security interest or transfer restriction expires as

a result of the provided mortgage loan or municipal loan used to settle this claim, and where

the security interest in real property or transfer restriction expires. For the purposes of this

Act, real property shall not be deemed encumbered by a security interest even where

a mortgage bank, for at least a period from the first day of providing a mortgage loan or

municipal loan or part thereof to the expiration of the security interest used to secure the

mortgage bank’s claims from mortgage loans or municipal loans, agrees under a separate

regulation66a

the first order decisive in terms of satisfaction of the security interests, except for

the security interests specified in the first sentence of paragraph 2, and secures this order by

way of its entry in the real estate register.

(4) A security interest in real property established to secure claims from a mortgage

loan or municipal loan shall expire upon repayment of the loan and its accessories.

A mortgage bank shall announce the expiry of a security interest in real property to the state

administration authority in charge of the real estate register.65

(5) In enforcing its security interest, a mortgage bank may sell the real property

pledged as security by judicial execution under a separate regulation,67

on the basis of an

agreement made in the form of a notarial deed between the mortgage bank, its borrower, and

the mortgagor, if not identical with the borrower, provided the parties agree on an execution

under a separate regulation67

in the said agreement. Such agreement shall establish a legal

obligation, and specify the beneficiary and the person subject to this obligation, the legal

grounds, objects, and the time limit for its fulfilment.

Article 75

(1) A mortgage bank shall provide mortgage loans and municipal loans under the

general terms and conditions it issues for granting mortgage and municipal loans, which shall

contain in particular:

66

) Article 15(1) of Act No 182/1993 Coll. of the National Council of the Slovak Republic on the ownership of

apartments and non-residential premises, as amended.

Article 17 of Decree No 136/1985 Coll. of the Federal Ministry of Finance, Ministry of Finance of the

Czech Socialist Republic, Ministry of Finance of the Slovak Socialist Republic, and the Governor of the

Czechoslovak State Bank on financial and other assistance for cooperative apartment housing construction

and private home modernisation, as amended. 66b

) Articles 16 to 18b of Act No 182/1993 Coll. of the National Council of the Slovak Republic, as amended. 66a

) Article 151k(3) of the Civil Code. 67

) Act No 233/1995 Coll. of the National Council of the Slovak Republic on court executors and execution

activities (and amending certain laws) (the Execution Code), as amended.

146

(a) the elements of an application for a mortgage loan or a municipal loan;

(b) the procedure to be followed in applying for a mortgage loan or a municipal loan;

(c) the terms and conditions for granting a mortgage loan or a municipal loan, including an

overall definition of the type, method and extent of securing a mortgage bank’s claims

under a mortgage or municipal loan agreement and a definition of the costs to be claimed

from the client in connection with a mortgage loan or a municipal loan and the conclusion

of such an agreement;

(d) the manner in which a mortgage or municipal loan agreement may be terminated;

(e) the procedure to be followed by a mortgage bank in the event a borrower defaults on

repayment of a mortgage loan or a municipal loan or its accessories;

(f) the changes in a mortgagor’s situation which shall entitle a mortgage bank to demand

early repayment of a mortgage loan or a municipal loan;

(g) the conditions for enforcing a security interest established in a real property to secure

a mortgage loan or a municipal loan;

(h) information on the rights of clients in accordance with paragraphs 6 to 12.

(2) A mortgage bank may not demand early repayment of its claims from a mortgage

loan or a municipal loan for reasons on the side of the mortgage bank or its legal successors;

this shall also apply where a mortgage bank is wound up and liquidated.

(3) The information that a mortgage bank shall make available on its business

premises under Article 37(1) must also include the mortgage bank’s general terms and

conditions for granting mortgage loans and municipal loans in accordance with paragraph 1

and the values of the state interest subsidy in percentage terms under Article 84(1) and Article

85a(1) set for individual calendar years. The mortgage bank shall provide additional

information at the client’s request.

(4) A mortgage loan agreement or a municipal loan agreement shall be made in

writing and it shall contain:

(a) the identification data of the mortgage bank and the client in at least the following range:

1. first name, last name, birth registration number, if assigned, date of birth, permanent

residence address (for a natural person);

2. designation, identification number, if assigned, registered office address or place of

business (for a legal person);

(b) the amount of a mortgage loan or a municipal loan provided and its maturity, the rules for

principal and interest repayment on a mortgage loan or a municipal loan provided, the

annual percentage interest rate on a mortgage loan or a municipal loan provided, which is

composed, in the case of a mortgage loan, of the mortgage bank’s valid basic interest rate

and gross margin, and a detailed specification of other costs to be claimed from the client

in connection with a mortgage loan or a municipal loan, and the conclusion of an

agreement on such a loan; for the purposes of this Act, ‘valid basic interest rate of

a mortgage bank’ means the valid basic interest rate set by a mortgage bank in percentage

terms and published pursuant to paragraph 9 as at the date when the mortgage loan

agreement is concluded, and ‘gross margin of a mortgage bank’ means a gross margin set

by a mortgage bank in percentage terms;

(c) the precise designation of the domestic real property pledged as security for a mortgage

loan or a municipal loan provided; the precise designation of this domestic real property

in a supplement to the mortgage or municipal loan agreement concluded no later than

before the funds, or part thereof, are provided from the mortgage or municipal loan shall

be deemed to be the meeting of this condition;

147

(d) the conditions dependent upon the objective circumstances under which the level of

annual percentage interest rate or other costs to be claimed from the client may be

adjusted;

(e) a detailed specification of the type, method, and range of securing a mortgage bank’s

claims under a mortgage loan agreement or a municipal loan agreement;

(f) other conditions stipulated for the provision and repayment of a mortgage loan or

a municipal loan in accordance with the mortgage bank’s general terms and conditions

for the provision of mortgage loans and municipal loans;

(g) the conditions for accelerated repayment, if any, of a mortgage loan or a municipal loan

on the client’s initiative;

(h) an undertaking given by a mortgage bank, whose client – a natural person as referred to

in Article 85a(1) – has become parent of a child or has adopted a child, to allow this

client to defer the repayment of a mortgage loan (principal) or to reduce the amount of

monthly mortgage loan repayments by up to one half for a period of 36 months, provided

that the client applies to the mortgage bank in writing for such deferral or reduction

within six months of the birth or adoption of the child and encloses a copy of the child’s

birth certificate in the application; the mortgage bank may also stipulate other criteria and

conditions for the deferral or reduction of mortgage loan principal repayments in the

mortgage loan agreement.

(5) A mortgage loan agreement or a municipal loan agreement may also contain other

requisites agreed between the mortgage bank and the client.

(6) A mortgage bank may not charge a client any interest, fees or other costs that are

not included in the relevant mortgage loan agreement or municipal loan agreement. The

mortgage bank shall not charge a client any interest, fees, or other costs related to the early

repayment of a mortgage loan or part thereof at the client’s request, if such early mortgage

loan repayment occurs in connection with the expiration of the initial rate fixation period of

the mortgage loan or a change in the rate of interest on the mortgage loan; in the case of

a variable interest rate, the mortgage bank shall notify the client free of charge of:

(a) the expiry date of the initial rate fixation period of the mortgage loan no later than two

months before that date, unless paragraph 11 provides otherwise;

(b) the date of any change in the mortgage loan interest rate, the new interest rate for the next

interest rate period, the current level of the basic interest rate published in accordance

with paragraph 9 as at the date of its publication, and the amount of gross margin for the

next interest rate period no later than two months before the change is made and applied,

unless paragraph 11 provides otherwise.

(7) A client who is a natural person under Article 85a(1) may apply for a deferral of

mortgage loan principal repayments or a reduction of monthly mortgage loan repayments

under Article 4(h) within five years after the mortgage loan is provided and interest is first

charged thereon, provided that the client has not applied for a deferral of mortgage loan

principal repayments under point 2 of Article 85a(3)(b); in this case, the claim to a state

interest subsidy for young people shall be preserved.

(8) A deferral of mortgage loan principal repayments or a reduction of monthly

mortgage loan repayments in accordance with paragraph 4(h), as selected by the client under

paragraph 4(h), shall be deemed to apply as of the effective date of the amendment to the

mortgage loan agreement under which such deferral or reduction is made.

(9) A mortgage bank shall publish its basic interest rate on its website.

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(10) A mortgage bank shall inform its clients in accordance with paragraph 6 of the

terms of conditions of mortgage loan repayment before maturity in full or in part, for which

interest, fees or other costs may not be charged to the client.

(11) Where a mortgage bank requires that an application for mortgage loan repayment

in full or in part before maturity be submitted before the initial rate fixation period expires or

before the mortgage loan interest rate is changed, the mortgage bank shall send a notification

pursuant to paragraph 6 no later than two months before the deadline set by the mortgage

bank for the submission of such application.

(12) In the case of a mortgage loan with a variable interest rate where the mortgage

loan interest rate did not change during the previous calendar year, the client shall be entitled

to repay such mortgage loan or part thereof once a year, while the mortgage bank shall be

prohibited to charge the client interest, fees or other costs in connection with such repayment

of a mortgage loan before maturity.

Article 76

(1) A list of mortgage loans and municipal loans and their amounts, security interests,

and the mortgage bank’s claims from mortgage loans and municipal loans that serve to back

mortgage and municipal bonds, or other assets serving as substitute coverage, shall be kept

separately by the mortgage bank in its register of mortgages.

(2) The register of mortgages and the documents on the basis of which entries have

been made in the register of mortgages must be kept by a mortgage bank separately from

other documents and protected against misuse, destruction, damage or loss.

(3) By the end of January and July of each calendar year, mortgage banks shall notify

Národná banka Slovenska and the Ministry of all entries made in the register of mortgages in

the last six months.

(4) The due form and method of keeping the register of mortgages pursuant to

paragraph 2 and the due form of information disclosed pursuant to paragraph 3 shall be

stipulated in a generally bonding legal regulation issued by Národná banka Slovenska and the

Ministry.

Article 77

Mortgage banks shall maintain a separate analytical record of mortgage transactions in

their accounting system.

Article 78

(1) Národná banka Slovenska shall appoint a mortgage controller to each mortgage

bank to supervise the conduct of mortgage transactions in the scope defined by this Act and


. Likewise, Národná banka Slovenska shall appoint a deputy mortgage

controller to each mortgage bank, who shall represent the mortgage controller in their absence

in the full range of their rights and obligations.

149

(2) Národná banka Slovenska shall discuss the appointment of a mortgage controller

and their deputy beforehand with the mortgage bank concerned.

(3) A mortgage controller and/or their deputy shall be dismissed by Národná banka

Slovenska.

(4) A mortgage controller and their deputy may only be a natural person who has the

necessary professional competence and integrity to pursue this activity. A natural person with

completed university education, who has at least five years’ experience in economics or law

in the banking sector shall be deemed professionally competent. A person shall be deemed to

have the necessary integrity if they have not been lawfully sentenced for any criminal offence

committed in a managerial position or for any intentional criminal offence.

Article 79

(1) A mortgage controller shall perform their duties on their own, independently and

impartially. In pursuing their activity, a mortgage controller shall only be bound by the

generally binding legal regulations, a contract to perform the tasks of a mortgage controller,

and decisions issued in the course of banking supervision or oversight under a separate

regulation13

over the activities of a mortgage controller.

(2) Any disputes between a mortgage controller and a mortgage bank shall be settled

by Národná banka Slovenska.

Article 80

(1) A mortgage controller shall supervise the issuance of mortgage bonds and

municipal bonds with regard to their elements and coverage under a separate regulation13

.

(2) Prior to each issue of mortgage bonds or municipal bonds, a mortgage controller

shall issue a written certificate testifying that they are covered in accordance with a separate

regulation,68

and that an entry has been made in the register of mortgages.

(3) A mortgage controller shall verify whether a mortgage bank provides mortgage

loans and municipal loans, secured by a security interest in real property, and whether

a mortgage bank meets its obligations in relation to the mortgage register under this Act and

other generally binding legal regulations.

(4) If requested by a mortgage bank, a mortgage controller shall assist in activities

related to the performance of mortgage transactions, which could not be completed by the

mortgage bank without such assistance.

Article 81

(1) Where a mortgage controller detects any shortcomings pursuant to Article 80, the

mortgage controller shall forthwith report this fact in writing to Národná banka Slovenska.

The provisions of Article 93 shall not apply to the disclosure of information under this

paragraph.

68

) Article 16(4) and (5) and Article 20(4) of Act No 530/1990 Coll., as amended.

150

(2) In performing their duties, a mortgage controller shall act in their own name, for

the account of the mortgage bank.

(3) A mortgage bank shall enable a mortgage controller to perform their duties, in

particular it shall allow the mortgage controller to inspect their accounting records, register of

mortgages, and other documents related to mortgage transactions.

(4) The amount of remuneration due to a mortgage controller and their deputy shall be

determined by Národná banka Slovenska upon agreement with the mortgage bank. The

remuneration shall be paid by the mortgage bank.

(5) A mortgage bank shall conclude with a mortgage controller a contract to perform

the tasks of a mortgage controller, detailing the rights and duties of the mortgage bank and the

mortgage controller. The mortgage bank shall also conclude a contract with a deputy

mortgage controller, detailing the rights and duties of the mortgage bank and the deputy

mortgage controller.

Article 82

(1) The activities of a mortgage controller and a deputy mortgage controller shall be

subject to banking supervision by Národná banka Slovenska under this Act.

(2) If, in the course of supervision, Národná banka Slovenska detects any

shortcomings in the activity of a mortgage controller or deputy mortgage controller, it may

impose a fine of up to EUR 3,300.

Article 83

Národná banka Slovenska and the Ministry shall stipulate details about the position

and activities of a mortgage controller and deputy mortgage controller in a generally binding

legal regulation.

Article 84

(1) A borrower under a mortgage loan agreement (Article 75(4)), for purposes set out

in Article 68(a) to (d), (hereinafter referred to as ‘mortgagor’), who is a natural person, shall

be entitled to receive an interest subsidy from the state budget of the Slovak Republic

(hereinafter referred to as ‘state interest subsidy’) under the terms and conditions stipulated in

this Act.

(2) ‘State interest subsidy’ means a percentage by which the rate of interest set in

a mortgage loan agreement is reduced by the State. The state interest subsidy for mortgage

loans shall be determined for each calendar year by the respective State Budget Act and shall

apply to all mortgage loan agreements in the relevant year; without prejudice to Article 122a.

The state interest subsidy shall be rounded up to the nearest whole euro cent.

(3) For the purposes of state interest subsidy calculation for a mortgage loan provided

in a foreign currency, the amount of the mortgage loan shall be converted at the reference

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exchange rate set and published by the European Central Bank or Národná banka Slovenska31

in a ruling as of the date when the mortgage loan agreement was concluded.

(4) A state interest subsidy may be granted for a mortgage loan of up to EUR 83,000

per residential real property, also in case of a married couple or the acquisition of such real

property into shared ownership. For the purposes hereof, ‘residential real property’ means

apartment buildings as defined in a separate regulation.71

(5) A mortgage loan for which a state interest subsidy is granted shall usually be

repaid in regular monthly instalments. If instalments of a mortgage loan are agreed upon

otherwise, the sum of funds granted as a state interest subsidy for such mortgage loan may not

exceed the sum that would have been provided as a state interest subsidy in the case of regular

monthly instalments.

(6) Where the interest rate – set when a mortgage loan was provided or after the

expiration of the initial rate fixation period of a mortgage loan or when any other change was

made in the mortgage loan rate – is lower than the state interest subsidy, a mortgagor shall

only be entitled to a state interest subsidy up to the level of the interest rate agreed for the

mortgage loan.

Article 85

(1) A claim to a state interest subsidy from the state budget of the Slovak Republic

shall be lodged by a mortgagor via a mortgage bank on the basis of an application submitted

to the mortgage bank.

(2) A state interest subsidy shall be granted to a mortgagor on an annual basis

throughout the loan maturity period fixed in a mortgage loan agreement, but for only one

mortgage loan agreement. Any amendment to a mortgage loan agreement which results in an

increase in the mortgage loan up to the amount given in Article 84(4) shall be deemed to be

the same mortgage loan agreement.

(3) If a mortgagor concludes more than one mortgage loan agreement, the state

interest subsidy shall be granted for the agreement to which a written statement to that effect

is attached; if such statement is attached to several mortgage loan agreements concluded in

the same year, the mortgagor shall lose their claim to a state interest subsidy under all

agreements for a period of the next 12 calendar months, starting on the first day of the

calendar month following the receipt of written information from the Ministry or a legal

person appointed by it concerning the existence of several agreements on which a claim to

a state interest subsidy has been lodged. For a married couple or co-owners, the claim in this

case shall expire either for both spouses or for all co-owners.

(4) A claim to a state interest subsidy shall expire:

(a) during a period when, on the grounds of default on the part of a mortgagor, a mortgage

bank reclassifies a claim arising under a mortgage loan to such classified claims for

which it is reasonably assumed that they will not be satisfied to the full amount of their

nominal value; or

31

) Section 12(12.1) of the Protocol on the Statute of the European System of Central Banks and the European

Central Bank (OJ C 321E, 29.12.2006).

Article 28(2) of Act No 566/1992 Coll. of the National Council of the Slovak Republic, as amended. 71

) Article 43b(3) to (6) of Act No 50/1976 Coll., as amended by Act No

237/2000 Coll.

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(b) when a mortgagor

1. does not use the mortgage loan for its intended purpose;

2. transfers the liability arising from the mortgage loan to another person except to

a person close to him; or

3. repays the mortgage loan before the lapse of four years since when it was provided.

(5) When shared ownership by a married couple or co-ownership expires or when

a mortgagor dies, a claim to a state interest subsidy shall pass onto the person to whom the

outstanding liabilities from the mortgage loan will pass.

(6) Where the borrower of a mortgage loan fails to meet the conditions laid down in

paragraph 4(b) point 3, the borrower shall be obliged to repay, via the mortgage bank, the

state interest subsidy granted for the entire period of maturity of the mortgage loan agreed in

the mortgage loan agreement, without undue delay.

Article 85a

(1) A borrower under a mortgage loan agreement (Article 75(4)), concluded for the

purposes set out in Article 68(a) to (c), shall be entitled, under the terms and conditions laid

down in this Act, to a state interest subsidy for young people from the state budget

(hereinafter referred to as ‘state interest subsidy for young people’), provided that this

borrower is a natural person not younger than 18 years and not older than 35 years

(hereinafter ‘young mortgagor’). If the young mortgagors are a married couple or several co-

borrowers, the age requirement under the first sentence is to be met by each person.

(2) ‘State interest subsidy for young people’ means a percentage by which the rate of

interest rate set in a mortgage loan agreement is reduced by the State. The value of such state

interest subsidy shall be determined each year in the State Budget Act for the respective fiscal

year and shall, for the duration of that year, apply to all mortgage loan agreements concluded

under the terms and conditions laid down in paragraphs 1 and 3. The state interest subsidy for

young people shall be rounded up to the nearest whole euro cent.

(3) A young mortgagor shall receive a state interest subsidy for young people where:

(a) as at the date of submission of a mortgage loan application, the young mortgagor has an

average monthly income, calculated for the calendar year preceding the year of

application, not exceeding more than 1.3-fold the national monthly nominal wage in the

Slovak Republic, as reported by the Statistical Office of the Slovak Republic for the

second but one calendar quarter preceding the calendar quarter in which the mortgage

loan application was submitted; if the young mortgagor is a married couple, their

combined average monthly income may not exceed more than 2.6-fold the national

monthly nominal wage in the Slovak Republic, as reported by the Statistical Office of the

Slovak Republic for the second but one calendar quarter preceding the calendar quarter in

which the mortgage loan application was submitted; if the young mortgagor comprises

several co-borrowers, their combined average monthly income may not exceed the

product of the number of co-borrowers and 1.3-fold the average monthly nominal wage

in the Slovak Republic, as reported by the Statistical Office of the Slovak Republic for

the second but one calendar quarter preceding the calendar quarter in which the mortgage

loan application was submitted;

(b) the mortgagee bank undertakes that, for a period of five years from when the mortgage

loan is provided and interest is first charged thereon, the mortgagor:

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1. will have the interest rate stipulated in the mortgage loan agreement reduced by the

state interest subsidy for young people as defined in paragraph 2 but by no more than

1%;

2. may defer the date of repayment of the mortgage loan principal;

3. may make mortgage loan repayments on an extraordinary and free-of-charge basis;

(c) the mortgage loan application was submitted after 1 January 2007.

(4) For the purpose of calculating the state interest subsidy for young people for

a mortgage loan provided in a foreign currency, the amount of the mortgage loan shall be

converted at the reference exchange rate set and published by the European Central Bank or

Národná banka Slovenska31

in a ruling as of the date when the mortgage loan agreement was

concluded.

(5) A state interest subsidy for young people shall be provided for a mortgage loan of

up to EUR 50,000 per residential real property, also for a married couple or for the acquisition

of such real property into shared ownership.

(6) Where a mortgage loan is provided together with a state interest subsidy for young

people, it shall usually be agreed that the repayments, including interest, will be made in

regular monthly instalments. If mortgage loan repayments are agreed otherwise, the amount

of funds provided in the form of state interest subsidies for young people for mortgage loans

may not exceed the amount that would be provided in the form of such subsidies were the

repayments to be made on a regular monthly basis. The provisions of the first and second

sentences are without prejudice to the provisions of paragraph 3(b) points 2 and 3.

Article 85b

(1) A young mortgagor who lodges a claim for a state interest subsidy for young

people shall do so on the basis of an application submitted to the mortgage bank.

(2) A state interest subsidy to a young mortgagor shall be granted on an annual basis

for a period of five years from when interest is first charged on the mortgage loan, and only

for one mortgage loan agreement. Any amendment to a mortgage loan agreement leading to

an increase in the mortgage loan up to the amount specified in Article 85a(5) shall be deemed

to be the same mortgage loan agreement.

(3) Where a young mortgagor concludes more than one mortgage loan agreements,

a state interest subsidy for young people shall be provided for the agreement to which

a written statement to this effect is attached. If such statement is attached to more than one

mortgage loan agreement concluded in the same calendar year, the young mortgagor shall

lose their claim to a state interest subsidy for young people under all mortgage loans

agreements for the next 12 calendar months; this period shall commence on the first day of

the calendar month following the receipt of written information from the Ministry, or a legal

person appointed by it, regarding the existence of more than one mortgage loan agreement

under which a state interest subsidy for young people has been claimed. Where such a case

involves a married couple or co-owners, the entitlement to a state interest subsidy for young

people shall expire either for both spouses or for all co-owners.

(4) A young mortgagor who has fallen into arrears with mortgage loan repayment

shall not be entitled to a state interest subsidy for young people in the period when the

154

mortgage bank, for this reason, classifies the mortgage loan as a claim that cannot reasonably

be expected to be settled in the full amount of its nominal value.

(5) The entitlement to a state interest subsidy for young people shall expire where:

(a) the young mortgagor:

1. does not use the mortgage loan for its intended purpose;

2. transfers the liability arising from the mortgage loan to another person who is not

a close person; for a transfer to a close person, this person must meet the conditions

laid down in Article 85a(1) and (3)(a);

3. repays the mortgage loan within four years from when it was provided;

4. submitted false information about their average monthly income for the purposes of

a mortgage loan agreement, including a state interest subsidy for young people; or

(b) a natural person who has received a state interest subsidy for young people submitted

false information about their age when the mortgage loan agreement was concluded.

(6) Where a young mortgagor ceases to be a joint tenant in a joint tenancy between

spouses or a co-owner in a tenancy in common, or where a young mortgagor dies, the

entitlement to a state interest subsidy for young people shall pass to the person who assumes

the outstanding liabilities under the mortgage loan agreement.

(7) Where a young mortgagor loses their entitlement to a state interest subsidy for

young people under paragraph 5(a), points 3 or 4, the young mortgagor shall, through the

mortgage bank, return without delay the amount of the subsidy they have already received.

Where a natural person who has received a state interest subsidy for young people loses their

entitlement to such subsidy under paragraph 5(b), the natural person shall, through the

mortgagee bank, return without delay the amount of the subsidy they have received.

(8) A mortgage bank shall bear no liability for the truthfulness of the data provided on

the average monthly income as referred to in Article 85a(3)(a).

(9) After five years from when interest was first charged on a mortgage loan

borrowed by a young mortgagor, the young mortgagor shall lose their entitlement to a state

interest subsidy for young people and shall at the same time gain right to a state interest

subsidy; the provisions of Article 85(3) shall equally apply in this case.

(10) The provisions of Articles 86 to 88 shall also apply to a mortgage loan

agreement, including a state interest subsidy for young people.

Article 86

(1) The Ministry of Construction and Regional Development of the Slovak Republic

shall remit payments to mortgage banks for the granting of state interest subsidies on

a monthly basis.

(2) Requests for state interest subsidies for a specific month shall be submitted by

mortgage banks to the Ministry of Construction and Regional Development of the Slovak

Republic no later than the 25th day of the following month.

(3) The Ministry of Construction and Regional Development of the Slovak Republic

shall transfer the funds mentioned in paragraph 2 by the 25th day of the month following the

receipt of a request from a mortgage bank for state interest subsidies, to a special account

155

opened by the mortgage bank for this purpose. From this account, the mortgage bank may

draw funds on a monthly basis for individual mortgagors entitled to a state interest subsidy.

(4) State interest subsidies granted to mortgagors for a given year shall be cleared by

the relevant mortgage bank within the time limit set by the Ministry of Construction and

Regional Development of the Slovak Republic.

(5) Mortgage banks shall be responsible for:

(a) the timely submission of claims to a state interest subsidy from the state budget;

(b) the correct calculation of the amount of state interest subsidies;

(c) the return of state interest subsidies in case of non-compliance with the terms and

conditions stipulated for the granting of a state interest subsidy.

Article 87

(1) A central register of mortgage loan agreements for which a state interest subsidy is

claimed shall be kept by the Ministry or a legal person it commissions to do so.

(2) Mortgage banks shall provide the Ministry or the person commissioned by it with

information on a monthly basis about new mortgage loan agreements for the purposes stated

in paragraph 1 within the time limits, in the form and under the conditions agreed with the

Ministry. The information so provided shall contain:

(a) the mortgagor’s birth registration number;

(b) the mortgage loan agreement number;

(c) a statement of claim to a state interest subsidy;

(d) the amount of the mortgage loan in euro;

(e) the amount of monthly instalments;

(f) the mortgage loan maturity date;

(g) the interest rate agreed in the mortgage loan agreement;

(h) the period for which a mortgage loan claim is reclassified owing to arrears on the part of

the mortgagor;

(i) the purpose for which the mortgage loan is provided;

(j) the amount in euro of the state interest subsidy;

(k) the precise designation of real property to be mortgaged in order to secure a mortgage

bank’s claims from a mortgage loan.

(3) State supervision over compliance with the terms and conditions stipulated for the

granting of a state interest subsidy shall be ensured by the Ministry. The Ministry shall be

entitled to request from a mortgage bank any information and documents needed to review

compliance with the terms and conditions stipulated for the granting of a state interest

subsidy. The provisions of a separate regulation72

shall apply as appropriate to the exercise of

such state supervision.

(4) The employees and members of bodies of the Ministry and the person it

commissions under paragraph 1 shall keep confidential all facts associated with the

performance of activities under paragraphs 1 to 3. The confidentiality obligation shall remain

in effect after the termination of the commission given to this person to perform the tasks

specified in paragraph 1 or after the termination of employment or a similar work relationship

72

) Act No 10/1996 Coll. on inspection in State administration, as amended.

156

or office in the bodies of that person; the foregoing is without prejudice to the provisions of

Article 91(2) to (7), Article 92(1) to (7), and Article 93.

(5) If, in performing state supervision, the Ministry reveals any shortcomings in

a mortgage bank’s operations consisting in a failure to comply with the terms and conditions

stipulated for the granting of a state interest subsidy, it shall place the mortgage bank under

the obligation to return to the state budget an amount corresponding to the illegitimately used

state interest subsidy.

(6) In addition to the measure under paragraph 5, the Ministry may also impose upon

a mortgage bank, depending on the severity of the breach of obligation and the duration of an

unlawful situation, a fine up to the double of the illegitimately used amount of a state interest

subsidy granted for a mortgage loan. If the measure referred to in paragraph 5 fails to be

respected, a fine may be imposed repeatedly, but its total amount is not to exceed the sum

given in the first sentence. Such fines shall bring in revenues for the state budget.

(7) Proceedings under paragraphs 5 and 6 shall be governed by the provisions of

a generally binding regulation on administrative proceedings72a

.

(8) The Ministry shall supply the Ministry of Construction and Regional Development

of the Slovak Republic on a monthly basis with information on total claims for state interest

subsidies in individual mortgage banks in the given calendar month, in order that the funds

are remitted in accordance with Article 86(3); this information shall be provided no later than

the 20th day of the following month. The Ministry shall also supply the Ministry of

Construction and Regional Development of the Slovak Republic, in order to facilitate its work

in providing state interest subsidies, with summary data on the purposes for which mortgage

loans have been provided on the basis of information from mortgage banks under Article

76(3), within ten working days of the date of delivery of this information to the Ministry.

Article 88

For the purposes of mortgage transactions and state interest subsidies, the provisions

of this Act and a separate regulation13

pertaining to real property shall apply equally to

residential and non-residential premises.

PART THIRTEEN

LOANS FOR YOUNG MARRIED COUPLES

Article 88a

(1) Where the borrowers under a loan agreement are a married couple and none of the

spouses is older than 35 years and the marriage has lasted for maximum two years (hereinafter

referred to as ‘a young married couple’) as at the date when they apply for a loan (hereinafter

‘loan for young married couples’), the borrowers shall, under the terms and conditions laid

down in this Act, be entitled to receive an interest subsidy from the state budget (hereinafter

‘state interest subsidy for young married couples’).

72a

) Act No 71/1967 Coll. on administrative proceedings (the Administrative Procedure Code), as amended.

157

(2) ‘State interest subsidy for young married couples’ means a percentage by which

the State reduces the rate of interest set in a loan agreement made between a bank and a young

married couple. The percentage of a state interest subsidy for young married couples shall

remain unchanged throughout the loan repayment period, as agreed when the loan agreement

with the young married couple is concluded. Such state interest subsidy for young married

couples for loan agreements concluded in individual calendar years shall be specified in

percentage terms in the State Budget Act for the corresponding fiscal years. The value of

a state interest subsidy for young married couples shall be rounded up to the nearest whole

euro cent.

(3) A young married couple shall be granted a state interest subsidy for young married

couples if:

(a) as at the date when they file an application for a loan for young married couples, the

spouses together have an average monthly income, calculated from their income in the

calendar year preceding the year of application for a loan for young married couples, of

no more than 2.6 times the average monthly nominal wage of an employee in the Slovak

Republic’s national economy, as ascertained by the Statistic Office of the Slovak

Republic for the calendar quarter preceding the calendar quarter in which the application

for a loan for young married couples is submitted;

(b) the bank or branch of a foreign bank undertakes to reduce the interest rate fixed in the

loan agreement with the young married couple, starting from when the loan is provided to

the young married couple and interest is first charged thereon and throughout the loan

repayment period, by at least one half of the state interest subsidy for newly married

couples determined in accordance with paragraph 2;

(c) the application for a loan for a young married couple was filed on or after 1 April 2010.

(4) For the purposes of calculating the state interest subsidy for a foreign currency

loan provided to a young married couple, the amount of the loan shall be converted at the

reference exchange rate set and published by the European Central Bank or Národná banka

Slovenska, and effective as at the date when the loan agreement with the young married

couple is concluded.

(5) A state interest subsidy for young married couples shall be granted for loans not

exceeding EUR 10,000.

(6) Loans, including interest, provided to young married couples eligible for a state

interest subsidy for young married couples are normally agreed to be repaid in regular

monthly instalments. Where the repayment of a loan by a young married couple is agreed

differently, the amount of funds granted in form of a state interest subsidy for young married

couples shall not exceed the amount that would be granted as a state interest subsidy for

young married couples with that loan if it were to be repaid in monthly instalments.

Article 88b

(1) A state interest subsidy for young married couples shall be claimed by a young

married couple from the state budget in an application submitted to a bank or a foreign bank

branch.

(2) A state interest subsidy for young married couples shall be granted to a young

married couple in each year of the loan repayment period as agreed when the loan agreement

with the young married couple was concluded, provided that it is granted for one loan only.

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Any amendment to a loan agreement with a young married couple increasing the loan amount

up to the limit defined in Article 88a(5) shall be deemed to be the same loan agreement with

the young married couple in question.

(3) Where a young married couple concludes more than one agreement on loans for

young married couples, the state interest subsidy for young married couples shall be granted

for the agreement for which a written statement to that effect is made; if such statement is

made for more than one agreement on loans for young married couples in the same year, the

young married couple’s entitlement to a state interest subsidy shall lapse in respect of all such

agreements for the next 12 calendar months, starting from the first day of the calendar month

following the receipt of notification in writing from the Ministry or a legal person appointed

by it of the existence of more than one agreement on loans for young married couples for

which a state interest subsidy for young married couples has been claimed.

(4) A young married couple shall not be entitled to a state interest subsidy for young

married couples during any period when, on grounds of the young married couple’s default

lasting for more than 90 days, the bank or branch of a foreign bank reclassifies the claim

arising from the loan for married couples to such classified claims for which it is reasonably

assumed that they will not be satisfied in the full amount of their nominal value.

(5) The entitlement to a state interest subsidy for young married couples shall lapse if

the young married couple:

(a) transfer the liability from a loan for young married couples to another person, except to

a person close to them; a close person must, as at the date of transfer of liability, meet the

conditions laid down in Article 88a(1) and (3)(a);

(b) when entering into a loan agreement including a state interest subsidy for young married

couples, submitted false information regarding the average monthly income or age;

(c) divorce during the term of a loan agreement made for a loan for young married couples.

(6) If either or both of the spouses die, the entitlement to a state interest subsidy for

young married couples shall be assigned to the person to whom the outstanding liabilities

from the loan for young married couple are assigned.

(7) If a young married couple’s entitlement to a state interest subsidy for young

married couples lapses under paragraph 5(b), the young married couple shall forthwith

return any state interest subsidy they have been granted, through the bank or branch of

a foreign bank.

(8) The bank or branch of a foreign bank shall not bear any liability for the veracity of

the information regarding average monthly income as referred to in Article 88a(3)(a).

Article 88c

(1) The Ministry shall remit payments to banks and branches of foreign banks for

state interest subsidies on a monthly basis.

(2) Requests for state interest subsidy payments for young married couples for

a specific month shall be submitted by banks and branches of foreign banks to the Ministry no

later than the 25th day of the next month.

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(3) The Ministry shall remit the funds under paragraph 2 to a bank or a foreign bank

branch to a special account opened for this purpose in the bank or foreign bank branch in

question, by the 25th day of the month following the receipt of a request from the bank or

foreign bank branch for state interest subsidies for young married couples. From that account,

the bank or foreign bank branch shall draw the appropriate amounts for individual couples

eligible for a state interest subsidy for young married couples on a monthly basis.

(4) Banks and branches of foreign banks shall ensure the settlement of state interest

subsidy payments received for young married couples for a specific year within the time limit

set by the Ministry.

(5) Banks and branches of foreign banks shall be responsible for:

(a) the timely submission of claims for state interest subsidies for young married couples

from the state budget;

(b) the correct calculation of the amount of state interest subsidies for young married

couples;

(c) the return of a state interest subsidy by a young married couple in the event of non-

compliance with the terms and conditions stipulated for the granting of a state interest

subsidy.

Article 88d

(1) A central register of loan agreements with young married couples eligible for

a state interest subsidy for young married couples shall be kept by the Ministry or by a legal

person it commissions to do so.

(2) Banks and branches of foreign banks shall supply the Ministry or a legal person

commissioned by the Ministry, on a monthly basis and in compliance with the time limits,

methods and conditions agreed with the Ministry, with information on new loan agreements

made with young married couples for the purposes set out in paragraph 1. Such information

must contain:

(a) the spouses’ birth registration numbers;

(b) the reference numbers of loan agreements made with young married couples;

(c) statements of entitlement to a state interest subsidy for young married couples;

(d) the amount of loans provided to young married couples in euro;

(e) the amount of monthly loan repayments in euro;

(f) the repayment dates of loans provided to young married couples;

(g) the interest rates agreed in loan agreements made with young married couples;

(h) the period for which claims from loans provided to young married couples have been

reclassified under Article 88b(4);

(i) the amount of a state interest subsidy for young married couples in euro.

(3) State supervision of compliance with the terms and conditions stipulated for the

granting of a state interest subsidy to young married couples shall be exercised by the

Ministry. The Ministry shall be entitled to request from a bank or a foreign bank branch any

supporting documents needed to verify compliance with the terms and conditions stipulated

for the granting of a state interest subsidy to young married couples. The provisions of


shall apply as appropriate to the exercise of such state supervision.

(4) If, in exercising state supervision, the Ministry reveals any shortcomings in the

operations of a bank or a foreign bank branch, consisting in non-compliance with the terms

160

and conditions stipulated for the granting of a state interest subsidy to young married couples,

it shall place the bank or foreign bank branch under the obligation to repay to the state budget

any state interest subsidy illegitimately used by young married couples.

(5) In addition to the measure mentioned in paragraph 4, the Ministry may also

impose upon a bank or a foreign bank branch, depending on the severity and duration of non-

compliance, a fine of up to twice the amount of a state interest subsidy illegitimately used by

a young married couple. If the measure under paragraph 4 is not respected, a fine may be

imposed repeatedly, in a total amount not exceeding the limit defined in the first sentence.

Such fines shall bring in revenues for the state budget.

(6) Proceedings under paragraphs 4 and 5 shall be subject to a generally binding

regulation on administrative procedure72a

.

(7) The employees and members of bodies of the Ministry or of the person it

commissions under paragraph 1 shall keep confidential any facts that are associated with the

pursuit of activities mentioned in paragraphs 1 to 3. The confidentiality obligation shall

survive the lapse of that person’s commission to pursue the activity mentioned in paragraph 1,

or the termination of employment or other legal relationship, or termination of office in that

person’s bodies; the foregoing is without prejudice to the provisions of Article 91(2) to (7),

Article 92(1) to (7), and Article 93.

PART FOURTEEN

CLIENT PROTECTION AND BANKING SECRECY

Article 89

(1) Banks and branches of foreign banks, pursuing banking activities in the territory

of the Slovak Republic, conduct transactions for their clients on a contractual basis in

accordance with the legal system of the Slovak Republic. Clients are entitled to conclude

a contract in the Slovak language, as well to receive information from banks and branches of

foreign banks, to make submissions to banks and branches of foreign banks, and to

communicate with banks and branches of foreign banks in any other form in the Slovak

language; this shall not exclude the possibility of using any other language in parallel where

this is required by a separate law or by a written agreement made between the bank or foreign

bank branch and the client, while the client is entitled to select the decisive language, unless

a separate law provides otherwise.72b

In contracts made with their clients, banks and branches

of foreign banks may define the rights and duties arising from transactions in contrast with the

relevant law or regulation, unless this is explicitly prohibited by any other law or regulation,

or unless the relevant provisions stipulate that no deviation is allowed;72c

such contract is to

be made in the due form as required by law or agreed upon by the parties, while the bank or

foreign bank branch concerned shall be liable for its preparation in paper form or

72b

) For example, Article 8(5) of Act No 270/1995 Coll. on the state language of the Slovak Republic, as

amended. 72c

) For example, Articles 2(3) and 53(1) and (4) of the Civil Code, Article 19(d) and Article 20(e) of the Civil

Dispute Procedure Code, and Articles 6 and 19 of Regulation (EC) No 593/2008 of the European

Parliament and of the Council of 17 June 2008 on the law applicable to contractual obligations (Rome I)

(OJ L 177, 4.7.2008), as amended.

161

electronically on durable media,72d

no later than the day when the transaction is concluded, as

well as for its storage and protection under Article 42(1).

(2) Bank and branches of foreign banks shall request proof of identity from their

clients in each transaction, except for those specified in paragraph 5; clients shall comply with

such request in each transaction. Bank and branches of foreign banks shall refuse to carry out

transactions for clients on an anonymous basis.

(3) For the purposes of paragraph 1, the identity of a client can be verified on the

basis of the client’s identity document pursuant to separate regulations on identity

documents73

or the client’s signature, provided that the client is known in person and the

signature is identical beyond any doubt to the client’s specimen signature kept at the bank or

foreign bank branch and taken after the client had proved their identity using an identity

document. Where transactions are conducted electronically, a client shall be identified on the

basis of a personal identification number or a similar code assigned by a bank or a foreign

bank branch, and an authentication code agreed between the bank or foreign bank branch and

the client, or an electronic signature under a separate law. In case of a juvenile client who has

no identity document, the identity of the client’s legal representative shall be verified and

a document shall presented to prove that the legal representative is authorised to act for and

on behalf of the client, as well as the birth certificate of the juvenile client.

(4) Banks and branches of foreign banks shall, in every transaction worth no less than

EUR 15,000, determine the ownership of funds used in the transaction. For the purposes of

this provision, the ownership of funds shall be determined on the basis of a binding written

statement in which the client shall declare whether the funds are their property and whether

the client is conducting the transaction for their own account; this written statement of

ownership may be part of a written agreement concluded between the bank or foreign bank

branch and the client in connection with the agreed transaction. If the funds are owned by

another person or if the transaction is conducted for the account of another person, the client’s

statement must specify the first name, last name, birth registration number or date of birth,

and the permanent residence address of the natural person, or the name, registered office, and

identification number, if assigned, of the legal person who is the owner of the funds and for

whose account the transaction is conducted; in this case the client shall deliver to the bank or

foreign bank branch a written approval from the natural or legal person concerned to use the

funds for the transaction in question and to carry out the transaction for that person’s account.

The obligation to deliver a written approval in accordance with the preceding sentence shall

not apply to Národná banka Slovenska, the Resolution Council, banks, branches of foreign

banks, the stock exchange, the commodity exchange, the central securities depository,

investment firms, branches of foreign investment firms, investment service intermediaries,

insurance companies, branches of foreign insurance companies, reinsurance companies,

branches of foreign reinsurance companies, asset management companies or branches of

foreign asset management companies, if they declare in a binding written statement that they

conduct transactions exclusively for their own account or for the account of their clients under

a separate law6, and they use exclusively their own funds for these transactions or the funds of

their clients they manage under a separate law6; this shall equally apply to pension funds

72d

) Article 2(m) of Act No 129/2010 Coll. on consumer credits and other credits and loans for consumers (and

amending certain laws). 73

) Act No 224/2006 Coll. on identity cards (and amending certain laws), as amended by Act No 693/2006

Coll.; Act No 381/1997 Coll. on travel documents, as amended; and Act No 48/2002 Coll. on the stay of

foreigners (and amending certain laws), as amended.

Act No 480/2002 Coll. on asylum (and amending certain laws), as amended.

162

management companies, supplementary pension management companies, and apartment

house custodians under a separate regulation73a

, if they are obliged persons under a separate

regulation21a

. Nor shall the obligation to deliver a written approval under this paragraph apply

to foreign banks established in a Member State, foreign electronic money institutions

established in a Member State, or to foreign financial institutions established in a Member

State. If a client fails to meet the requirements laid down in this paragraph, the bank or foreign

bank branch concerned shall decline to carry out the requested transaction.

(5) Where a client uses an amount not exceeding EUR 2,000, banks and branches of

foreign banks shall not demand, unless a separate law21a

provides otherwise, proof of the

client’s identity:

(a) in transactions carried out through currency exchange machines;

(b) in providing distance financial services;74a

(c) in handling deposits, except when a deposit is established.

(6) The provisions of paragraphs 2 and 4 are without prejudice to the duties of banks

and branches of foreign banks under a separate regulation21a

; nor shall these provisions apply

to the right of banks and foreign bank branches to use third parties in determining a client’s

identity under a separate law21a

.

Article 90

(1) Banks and branches of foreign banks shall notify in writing the competent tax

authority according to the registered office or permanent residence of their business clients,75

the number of each current or deposit account opened and closed by a current or former

business client, within 10 days of the end of the calendar month in which the account was

opened or closed; such information may be further disclosed by the tax authority in

accordance with a separate regulation.76

(2) Banks and branches of foreign banks shall provide information to legal persons in

which the government has a 100% holding and which is involved, under a resolution of the

Government of the Slovak Republic, in the assistance scheme for clients who have lost their

ability to repay a housing loan as a consequence of the economic crisis (hereinafter referred to

as ‘client assistance agency’), at the request of the client assistance agency and to the extent

necessary for the verification of data on loan repayment and data on the financial and

economic situation of clients asking for being included in that scheme.

(3) Unless a separate regulation76aa

provides otherwise, a public authority may enter

into an agreement with a bank or with a foreign bank branch on automated electronic

communication via a separate information system, which must comply with the requirements

for a smooth, reliable and safe exchange of information. Such agreement on automated

electronic communication via a separate information system may also be concluded on behalf

of a bank or a foreign bank branch by an interest group of banks and branches of foreign

73a

) Article 6(1) and (2), Articles 8 to 8b, and Article 10(4) of Act No 182/1993 Coll. of the National Council of

the Slovak Republic, as amended. 74a

) Act No 266/2005 Coll. on the protection of consumers in respect of the distance marketing of financial

services (and amending certain laws). 75

) Article 2(2) of the Commercial Code. 76

) Article 23 of Act No 511/1992 Coll. on the administration of taxes and fees and on changes in the system

of territorial financial authorities, as amended. 76aa

) For example, Act No 233/1995 Coll. of the National Council of the Slovak Republic on court executors and

execution activities (and amending certain laws) (the Execution Code), as amended.

163

banks86f

, for which this interest group was constituted86f

. On behalf of public authorities

joined in a professional self-governing chamber87d

, such agreement may also be concluded by

that professional self-governing chamber. The interest group shall, without undue delay,

provide the text of the agreement on electronic communication to each bank and foreign bank

branch concerned. If an agreement on electronic communication is concluded between

a professional self-governing chamber joining public authorities and the interest group of

banks and branches of foreign banks86f

in the range specified in a separate regulation87d

, the

procedure stipulated by the agreement is to be followed by all banks and foreign bank

branches, while the requirements for a smooth, reliable and safe information exchange are to

be ensured jointly by the professional self-governing chamber and the interest group of banks

and branches of foreign banks86f

. When entering into an agreement on automated electronic

communication via a separate information system, the interest group of banks and branches of

foreign banks shall also agree a form for electronic submissions or for electronic official

documents. This form shall also be binding where an electronic submission or electronic

official document is not delivered via the agreed electronic communication system.

Article 91

(1) All information and documents, which are not publicly available, on matters

concerning the clients of banks and foreign bank branches are subject to banking secrecy,

including but not limited to information on transactions, account balances and deposit

balances. Banks and branches of foreign banks shall keep such information confidential and

protect it against disclosure, misuse, damage, destruction, loss or theft. Information and

documents on matters that are subject to banking secrecy may be disclosed by a bank or a

foreign bank branch to a third person only with the prior written consent of the client

concerned or upon their written instruction for the purposes and subject to the conditions

stated in this consent or instruction, unless this Act provides otherwise. In return for payment

of the material costs, clients shall have the right to become acquainted with the information

kept on them in the database of a bank or a foreign bank branch, and to receive a transcript of

such information. The disclosure of information in summary form, where the name of the

bank or foreign bank branch and the full name of the client and information under a separate

regulation76a

are not stated, is not deemed to be a breach of banking secrecy.

(2) For the purposes of this part of the Act, the following persons shall also be

deemed to be clients of a bank or a foreign bank branch: a legal successor of an existing client

within the scope of the rights and duties that the legal successor has acquired; a person with

whom a bank or a foreign bank branch has negotiated a transaction, even if the transaction did

not actually take place; a person who has ceased to be a client of a bank or a foreign bank

branch; and any person about whom a bank or a foreign bank branch has received data

hereunder from another bank or foreign bank branch, data from the Register of Loans and

Guarantees under Article 38, data from the Register of Clients under Article 92(7), or data

from the Joint Register of Banking Information under Article 92a.

(3) Banks and branches of foreign banks shall submit, without the client’s consent,

a report on all facts that are subject to banking secrecy to Národná banka Slovenska, to

persons commissioned to exercise supervision, including invited persons15a

and persons

specified in Articles 6(7) and 49(2), to the Resolution Council for the purpose of exercising its

powers under this Act or a separate regulation30zx

, to auditors during assignments stipulated

by this Act or a separate law40

, and to the Deposit Protection Fund for the performance of

76a

) Article 38(6) of Act No 492/2009 Coll., as amended with effect from 24 October 2012.

164

tasks under a separate regulation77

; home savings banks shall disclose such information also

to persons commissioned to control the use of state interest subsidies in home savings78

, and

mortgage banks shall disclose such information to their mortgage controllers, deputy

mortgage controllers, and to persons commissioned to control the use of state interest

subsidies in mortgage transactions.

(4) Where matters concerning a client are subject to banking secrecy, the bank or

foreign bank branch shall submit, without the client’s consent, a report on these matters to any

of the following entities on the basis of a request in writing from the respective entity:

(a) a court of justice, including a notary public in the capacity of a court commissioner, for

the purposes of civil dispute procedure and administrative court procedure to which the

client of the bank or foreign bank branch is a party, or the subject of which is the property

of the client of the bank or foreign bank branch;79

(b) a law enforcement authority or court for the purposes of criminal prosecution 80

;

(c) a tax authority80a

, customs authority80b

, or tax-collecting municipality80c

for the purposes

of tax administration, or a customs authority for the purposes of customs proceedings to

which the client of the bank or foreign bank branch is a party under a separate

regulation81

, including the recovery of tax arrears in tax execution proceedings or the

recovery of a customs debt in customs execution proceedings;

(d) the Government Audit Office82

conducting financial audit activities under a separate

regulation82

in respect of the client of the bank or foreign bank branch;

(e) a court executor assigned to conduct execution proceedings under a separate regulation67

,

or, for the purpose of auditing the accounts and execution proceedings of an executor

who has been relieved from duty under a separate law82a

, by the Slovak Chamber of

Executors;

(f) a state administration authority for the purpose of executing a decision83

imposing an

obligation upon the client of the bank or foreign bank branch, or a creditor of the client of

the bank or foreign bank branch, to make a specific payment;

(g) the Criminal Police or Financial Police of the Police Force for the purposes of detecting

criminal acts, investigating and searching for the perpetrators84

, or in order to support the

Financial Police in their tasks under a separate regulation84a

in proving the origin of

property;

77

) Articles 3(5) and 12(1) of Act No 118/1996 Coll. of the National Council of the Slovak Republic, as

amended. 78

) Act No 310/1992 Coll. of the Slovak National Council, as amended. 79

) The Civil Dispute Procedure Code. The Civil Non-Dispute Procedure Code. The Administrative Court

Procedure Code. 80

) The Criminal Code. 80a

) Act No 150/2001 Coll. on tax authorities (and amending Act No 440/2000 Coll. on financial control

administration), as amended. 80b

) Act No 199/2004 Coll. on customs (and amending certain laws) (the Customs Code), as amended. 80c

) For example, Article 4(3)(c) of Act No 369/1990 Coll. on municipalities, as amended by Act No 453/2001

Coll. 81


Act No 199/2004 Coll., as amended. 82

) Act No 357/2015 Coll. 82a

) Article 16b of Act No 233/1995 Coll., as amended by Act No 341/2005 Coll. 83

) Act No 71/1967 Coll. on administrative proceedings (the Administrative Procedure Code), as amended by

Act No 215/2007 Coll. 84

) Article 2(1)(b), (c) and (l), and Articles 29a and 76 of Act No 171/1993 Coll. on the Police Force, as

amended 84a

) Article 4(5)(c) of Act No 101/2010 Coll. on evidence of the origin of property.

165

(h) the Ministry in exercising control as stipulated by this Act or by a separate regulation85

;

(i) a receiver or preliminary receiver in bankruptcy, restructuring, composition or debt

restructuring proceedings, or a supervising administrator conducting supervisory

administration in matters related to the client of a bank or a foreign bank branch whose

property is the subject of bankruptcy, restructuring, composition or debt restructuring

proceedings or who has been placed under supervisory administration in compliance with


;

(j) a competent state authority for the purpose of discharging obligations arising from an

international treaty binding upon the Slovak Republic86

, where the discharge of

obligations under this treaty may not be declined on account of banking secrecy;

(k) the National Security Office, the Slovak Information Service, Police Force, and Military

Intelligence for the purpose of performing security checks within their fields of

competence in accordance with a separate regulation86a

;

(l) the Office for Personal Data Protection for the purpose of supervising under a separate

law37

the processing and protection of personal data of clients of a bank or a foreign bank

branch;

(m) the Supreme Control Office of the Slovak Republic for the purpose of checking a client

of a bank or a foreign bank branch under a separate law86b

;

(n) the Judicial Treasury for the purpose of collecting a judicial claim under a separate law86c

from a client of a bank or a foreign bank branch;

(o) the Slovak Information Service for the purposes of fight against organised crime and

terrorism in accordance with a separate regulation86d

;

(p) the Military Intelligence for the purposes of obtaining, concentrating and evaluating any

information that is important for the defence of the Slovak Republic under a separate

regulation86da

; especially information about the activities of foreign intelligence services,

terrorists, and facts that may seriously endanger or damage the military and economic

interests of the Slovak Republic;

(r) a client assistance agency to the extent necessary for verifying the data concerning the

repayment of liabilities from loans and the net worth of the clients included or applying

for inclusion in the assistance scheme for clients who have lost their ability to repay a

housing loan as a consequence of the economic crisis;

(s) the Criminal Office of the Financial Authority for the purposes of performing tasks in

investigating criminal offences, identifying and searching for the perpetrators;86bd

85

) For example, Articles 5 and 6 of Act No 310/1992 Coll. of the Slovak National Council, as amended;

Articles 2(a), 6, 12(1), 14(6), and 16(6) of Act No 126/2011 on the enforcement of international sanctions. 86

) For example, the United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic

Substances (Announcement No 462/1991 Coll.), the OECD Convention on Combating Bribery of Foreign

Public Officials in International Business Transactions (Announcement No 318/1999 Coll.), the Council of

Europe Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime and on

the Financing of Terrorism (Announcement No 109/2002 Coll.), the Council of Europe Criminal Law

Convention on Corruption (Announcement No 375/2002 Coll.), and the International Convention for the

Suppression of the Financing of Terrorism (Announcement No 593/2002 Coll.). 86a

) Act No 215/2004 Coll. on the protection of classified information (and amending certain laws), as

amended. 86b

) Articles 2 and 4 of Act No 39/1993 Coll. on the Supreme Control Office of the Slovak Republic, as

amended. 86c

) Articles 6 to 13 of Act No 65/2001 Coll. on the enforcement of judicial claims. 86d

) Article 2(1)(d) and (2) of Act No 46/1993 Coll. on the Slovak Intelligence Service, as amended by Act No

256/1999 Coll. 86da

) Article 2(1)(b) to (d) of Act No 198/1994 Coll. on the Military Intelligence Service. 86bd

) Article 11(2) of Act No 199/2004 Coll., as amended.

Article 5(3)(h), (i) and (l) of Act No 333/2011 Coll. on state administration authorities in the area of taxes,

fees and customs, as amended by Act No 441/2012 Coll.

166

(t) the Ministry in connection with the imposition of international sanctions under a separate

regulation86dc

;

(u) a competent court to the extent necessary for the performance of its tasks of identifying

final beneficiaries and of maintaining the Register of Public Sector Partners under a

separate regulation86dd

;

(v) the bank or foreign bank branch for the purpose of verifying the information specified in

Article 27c(2) and Article 27d(3), second sentence;

(w) the Antimonopoly Office of the Slovak Republic to the extent necessary for the

performance of its tasks related to the protection of economic competition under separate

regulations86de

;

(y) in the case of a client who is party to claim recovery proceedings before the Social

Insurance Agency under a separate regulation86dh

, the Social Insurance Agency86dg

for the

purpose of serving a garnishee order against the client’s bank account.

(5) A written request made under paragraph 4 shall contain information that enables

a bank or a foreign bank branch to identify the matter in question, especially the full name of

the person on which data are requested and the range of the data requested; such information

need not be stated in the written request made in accordance with paragraph 4(b), (g), (o)

and (w). A written request made pursuant to paragraph 4(a) must include an authorisation

from the court commissioning a notary to act as a court commissioner; a written request made

under paragraph 4(e) must contain an authorisation from the court commissioning a court

executor to conduct enforcement. A written request made pursuant to paragraph 4(i) must

contain the bankruptcy court’s decision to appoint an administrator or a preliminary

administrator or a reference to the Commercial Bulletin in which such decision has been

published; if this refers to a written request made by the supervising administrator, the request

must contain a reference to the Commercial Bulletin in which the introduction of supervisory

administration was announced. The court’s decision on such delegation or appointment must

be delivered in the original or as copy certified pursuant to separate regulations50

, unless it has

been previously published in the Commercial Bulletin. Subsequent to an agreement with

a bank or a foreign bank branch, it is also possible to submit written requests as stipulated in

paragraph 4 in electronic form, using an electronic signature, a guaranteed electronic

signature, or other ways of verifying the applicant’s identity as agreed in writing; in such

cases, it is not necessary to present a court decision on delegation or appointment.

(6) Disclosure of information necessary for the provision of payment services through

a designated legal person9 is not a breach of banking secrecy. Nor is it a breach of banking

secrecy if a bank or foreign bank branch discloses information in the performance of its duty

as an authorised person in respect of the maintenance of the Register of Public Sector

Partners86dd

.

(7) Compliance with the obligation of banks and branches of foreign banks to report

unusual banking transactions under a separate law21a

shall not be deemed to be a violation of

banking secrecy. The same applies to the obligation of banks and foreign bank branches to

86dc

) Articles 4(2), 14(5) and (6), and 16(6) of Act No 126/2011 Coll., as amended by Act No 394/2011 Coll. 86dd

) Act No 315/2016 Coll. on the Register of Public Sector Partners (and amending certain laws). 86de

) Article 22(2) of Act No 136/2001 Coll., as amended.

Regulation (EC) No 1/2003 of 16 December 2002 on the application of the rules of economic competition

laid down in Articles 81 and 82 of the Agreement (Special Issue, OJ EU, Chap. 8/Volume 2; OJ EC, L 1,

4.1.2003), as amended. 86dh)

Article 225j of Act No 461/2003 Coll., as amended by Act No 2/2017 Coll. 86dg)


167

notify, under a separate law80

, the law enforcement authorities of any suspicion of a criminal

act committed or contemplated in connection with matters that are otherwise subject to

banking secrecy.

(8) Banks and branches of foreign banks shall provide the Ministry, within the time

limits set thereby, with a written list of clients subject to international sanctions imposed

under a separate regulation86e

; the provided list must also contain the account numbers and

account balances of these clients.

(9) Banks and branches of foreign banks can also send such reports as stipulated in

paragraph 4 by electronic means; this is without prejudice to the provisions of paragraph 10.

(10) A written request to a bank or a foreign bank branch under paragraph 4 can be

filed in electronic form and the bank or foreign bank branch addressed shall also deliver the

requested information on a client in electronic form in accordance with paragraph 4, while the

transfer of information between the applicant and the bank or foreign bank branch shall take

place through an automated electronic communication system operated by an interest group of

banks and branches of foreign banks.86f

A written request according to the first sentence shall

be made in the manner and form specified in paragraph 5 on the basis of an agreement made

between the applicant or group of applicants and the interest group of banks and branches of

foreign banks, which shall forthwith provide each bank or foreign bank branch with the text

of the agreement made and the procedure agreed therein shall be observed by each bank or

foreign bank branch. If the applicant or group of applicants as referred to in paragraph 4

agrees with the interest group of banks and branches of foreign banks upon the written

application form, the relevant applicant or group of applicants shall use this form when

making a written application pursuant to paragraph 4, even if the written application is not

filed through the automated electronic communication system operated by the interest group

of banks and branches of foreign banks.

(11) Compliance with the reporting requirement in relation to the competent authority

of the Slovak Republic, with the aim of ensuring an automatic exchange of financial account

information for tax administration purposes, shall not be deemed to be a breach of banking

secrecy under a separate regulation86g

.

(12) Banks, foreign banks, foreign bank branches and creditors under a separate

regulation86i

do not breach banking secrecy by fulfilling their obligations86h

.

Article 92

(1) Banks and branches of foreign banks shall, upon written request – with or without

the consent of the client concerned, provide any data needed to identify a client, including the

client’s account number and payment operations data, to any person who presents a written

statement to the bank or foreign bank branch that:

86e

) Act No 126/2011 Coll. 86f

) Articles 20f to 20j of the Civil Code. 86g

) Act No 359/2015 Coll. on the automatic exchange of financial account information for tax administration

purposes (and amending certain laws). 86i)

Article 20(1)(a) of Act No 129/2010 Coll., as amended by Act No 35/2015 Coll. 86h)

Article 7(6), (7) and (11) of Act No 129/2010 Coll., as amended.

168

(a) owing to an error in payment or settlement operations, the person concerned suffered

damage consisting in the transfer of funds owned or managed by that person and the

crediting of these funds to the client’s account, and

(b) the recovery of such wrongly transferred funds requires data for identifying the client

concerned and details of that client’s account to which the funds have been credited as

a result of an error mentioned under subparagraph (a).

(2) A bank or a foreign bank branch shall not provide the data specified in

paragraph 1 if the client concerned, after receiving a written notice from the bank or foreign

bank branch regarding the client’s request, orders the bank or foreign bank branch to transfer

back the funds from the client’s account within seven calendar days from the date of delivery

to the bank or foreign bank branch of a written request for client identification data.

(3) If a client of a bank or a foreign bank branch fails to meet the obligations of

a client towards the bank or foreign bank branch duly and in time despite a written appeal, the

bank or foreign bank branch may, without the client’s consent, provide information about this

client in the range specified in Article 93a(1)(a), points 1 to 3, as well as information and

documentation on the client’s defaulted obligations to an expert supposed to appraise the

client’s obligations,87

to a court executor it has designated in a proposal for execution against

the client or with whom it files its title against the client subject to execution, or to an

auctioneer with whom it has made a contract to conduct a voluntary auction pursuant to

a separate regulation87a

in connection with the client’s defaulted obligation. If a client of

a bank or a foreign bank branch fails to meet the obligations of a client towards the bank or

foreign bank branch duly and in time despite a written appeal, or if another dispute between

the bank or foreign bank branch and the client occurs, the bank or foreign bank branch may,

without the client’s consent, provide information about this client in the range specified in

Article 93a(1)(a), points 1 to 3, as well as information and documentation on the dispute in

question to an attorney whom it has authorised in writing to represent it against the relevant

client in seeking protection or enforcement of unsatisfied or disputed rights of the bank or

foreign bank branch. In so doing, the bank or foreign bank branch may only provide

information and documentation on the client’s defaulted obligations or its disputed relations

with the client to which the power of attorney applies; the bank and foreign bank branch may

only provide information and documentation concerning other individual relations with the

client under the conditions and in the range specified in this Act.

(4) The persons and authorities mentioned in paragraphs 1 to 3, or in Article 91(1) to

(7), may use the information, data, and reports provided by a bank or a foreign bank branch

on matters that are subject to banking secrecy only for purposes or proceedings for which the

information, data, and reports in question were disclosed; in so doing, they shall comply with

the confidentiality obligation. The persons and authorities specified in paragraphs 1 to 3, or in

Article 91(1) to (7), may exchange such information between themselves only for the

purposes for which the information was provided; otherwise they may disclose such

information only with the consent of the bank or foreign bank branch in accordance with the

conditions set out in paragraphs 1 to 3 and in Article 91(1) to (7).

(5) If, on the grounds of arrears on the client’s part, a claim of a bank or a foreign

bank branch from a granted loan or guarantee is classified under Article 39(11) and (12) as

87

) For example, Act No 36/1967 Coll. on experts and interpreters, as amended by Act No 238/2000 Coll. and

Act No 466/2002 Coll. 87a

) Act No 527/2002 on voluntary auctions (and amending Act No 323/1992 Coll. on notaries and notarial

activities (the Notarial Code)), as amended.

169

a classified claim that can reasonably be expected not to be satisfied to the full amount of its

nominal value, the bank or foreign bank branch concerned shall be entitled, without the

client’s consent, to provide other banks and branches of foreign banks with data to the effect

that this client, identified to no more than the extent set in Article 93a(1)(a), points 1 and 2,

has violated their duties and is in arrears with the settlement of the said claim, as well as with

data on this claim and its classification. If a client of a bank or a foreign bank branch is,

despite being notified in writing by the bank or foreign bank branch, more than 90 days in

arrears with the settlement of any part of a financial liability or other obligation towards the

bank or foreign bank branch, or if the client repeatedly fails to meet any obligation towards

the bank or foreign bank branch, the bank or branch of a foreign bank concerned may, after

giving a prior notice to the client and without the client’s consent, notify other banks and

branches of foreign banks that the client has defaulted on certain liabilities towards the bank

agreed-upon in a contract or in a generally applicable regulation. In such cases, the bank may

disclose only the client’s name, place of registered office or permanent residence, and the

obligation violated by the client. The bank may not carry on providing such information on

a client’s default after the client has fully and completely redressed the consequences of the

default, in particular after the client has settled a past-due liability in full, including its

accessories; the bank shall inform other banks and branches of foreign banks of this

rectification without delay. Information provided in this way is subject to banking secrecy.

(6) In the event of security interest enforcement by a pledgee whose turn it is to

satisfy their claim from the collateral after the bank or foreign bank branch concerned, such

bank or branch of a foreign bank shall disclose information subject to banking secrecy on the

amount of the claim secured by a security interest of the bank or foreign bank branch, needed

to assess the collateral, only to the person assessing the collateral for the purposes of security

interest enforcement under a separate regulation87ab

.

(7) Banks and branches of foreign banks shall be entitled:

(a) to keep a register of clients who do not meet, duly and in time, their commitments

ensuing from contractual relationships between the bank and a client, clients who make

what a bank or a foreign bank branch considers an unusual business transaction as

defined in a separate regulation21a

, and clients to whom international sanctions apply

under a separate regulation86d

;

(b) to disclose, even without the client’s consent, information from this register to other

banks or branches of foreign banks; the information disclosed shall be subject to banking

secrecy for these banks and branches of foreign banks.

(8) If, despite being notified in writing by the bank or foreign bank branch concerned,

a client is permanently more than 90 days in arrears with the discharge of a financial liability

or part thereof towards the bank or foreign bank branch, such bank or branch of a foreign

bank may assign its claim corresponding to this liability by way of a written contract to a third

person, including a non-bank person (hereinafter referred to as ‘assignee’), with or without the

client’s consent; this is without prejudice to claim assignment rules arising from consumer

credit agreements under a separate regulation87ac

or from housing loan agreements under a

separate regulation87ad

. The bank or foreign bank branch may not have recourse to this right if

the client repays the past-due liability to the bank or foreign bank branch in full, including

accessories, prior to the date of claim assignment; this shall not apply if the sum of the client’s

87ab

) For example, Act No 527/2002 Coll., as amended; Act No 233/1995 Coll., as amended. 87ac)

Article 17(1) and (2) of Act No 129/2010 Coll., as amended.

Article 525(2) of the Civil Code, as amended. 87ad)

Article 20(6) and (8) of Act No 90/2016 Coll.

170

all arrears with the discharge of the same financial liability of part thereof towards the bank or

foreign bank branch exceeds one year. When assigning a claim, the bank or foreign bank

branch shall also hand over to the assignee the documentation on the liability relationship

underlying the claim transferred; the bank or foreign bank branch may provide information to

the assignee on other liability relationships between the bank or foreign bank branch and the

client only under the conditions and in the range stipulated by this Act.

(9) Information subject to banking secrecy may be disclosed only with the prior

approval of Národná banka Slovenska in connection with the sale of a bank or a foreign bank

branch, or part thereof, under a separate regulation28

, or in connection with the sale of a share

of at least 33% in the capital of a bank, or in connection with the merger or consolidation of

a bank, including the merger of another legal person with a bank. A bank or a foreign bank

branch may provide such information only to a person with whom negotiations are underway

on the signing of a contract, or to a person with which the bank is expected to merge or

consolidate, or to a person producing documents required for the conclusion of a contract on

the sale, merger or consolidation of a bank. Persons receiving information that is subject to

banking secrecy shall keep such information confidential even after the negotiations have

ended, or the documents have been produced, or the merger or consolidation of the bank has

taken effect. With such persons, the bank or foreign bank branch concerned shall conclude a

written contract governing the obligation of confidentiality and the protection of information

subject to banking secrecy, as well as responsibility for its misuse. Unless this contract is

concluded, the approval of Národná banka Slovenska may not be granted.

(10) For submitting a report to an auditor under Article 91(3) and a report under

Article 91(4)(a), (e) and (i), banks and branches of foreign banks shall be entitled to

reimbursement for their expenses. Reimbursement for expenses is also due to a bank or

a foreign bank branch for the submission of a report under Article 91(4)(a), (e) and (i), if the

person on which data are requested in writing is not a client of the bank or foreign bank

branch in question. The reimbursement of expenses incurred in connection with the delivery

of a report under Article 91(4)(i) shall not be subject to a separate regulation.87aa

(11) A bank that is part of a consolidated group controlled by another bank, foreign

bank or financial institution, which is subject to supervision on a consolidated basis in its

home country, shall be entitled, with or without the client’s consent, to provide information

subject to banking secrecy to a person that controls this group, specifically to the extent

necessary to compile statements and reports on a consolidated basis, but to no more than the

extent specified in Article 93a(1)(a) and on condition that the person controlling this group

will provide for the protection of the information supplied, at least at the same level as the

bank supplying the information. The information so provided shall continue to be subject to

banking secrecy and may only be used for the purpose for which it was provided.

Article92a

(1) For the purposes of preparing, concluding and executing transactions with clients

and for the purposes of documenting the operations of banks and branches of foreign banks,

banks and branches of foreign banks may, by automated or non-automated means, create

a Joint Register of Banking Information (hereinafter referred to as ‘Joint Banking Register’),

through which banks and branches of foreign banks shall be entitled, with the client’s consent

in accordance with Article 91(1), to make available and provide to each other, solely under

87aa


171

the conditions stipulated by this Act and by a separate law37

, free of charge or in consideration

for the real costs incurred, data on loans and bank guarantees granted to their clients, data on

requested loans and bank guarantees where the clients have demonstrably applied for them,

data on these clients in the range specified in Article 93a(1)(a), points 1 to 3, data on their

claims arising from loans and bank guarantees granted to clients and the securing of these

claims, data on liability repayment by clients in respect of the loans and bank guarantees

granted, and data on the financial standing and trustworthiness of clients in terms of liability

repayment in respect of the loans and bank guarantees granted.

(2) Banks and branches of foreign banks may, under the conditions stipulated by this

Act and by a separate law37

, entrust the operation of the Joint Banking Register, including

data processing in the Joint Banking Register, only to a joint auxiliary banking services

undertaking acting in the capacity of an operator87b

; interests in the share capital of this

undertaking may be held exclusively by banks, branches of foreign banks, or by Národná

banka Slovenska. Such a joint auxiliary banking services undertaking shall store the Joint

Banking Register and the data therein in an appropriate manner, to make backup copies of the

data stored, to keep them strictly confidential and protect them against unauthorised access,

disclosure, misuse, modification, damage, destruction, loss or alienation. The joint auxiliary

banking services undertaking and the Joint Banking Register shall be subject to supervision.

The joint auxiliary banking services undertaking shall be entitled to commission third

persons87b

to process the data stored in the Joint Banking Register under the conditions laid

down in a separate law37

; where data processing is done in a manner requiring approval from

the Office for Personal Data Protection under a separate law37

, the joint auxiliary banking

services undertaking shall only be entitled to commission third persons to process data that

are subject to approval by the Office for Personal Data Protection.

(3) Information supplied to or from the Joint Banking Register shall continue to be

subject to banking secrecy. Information from the Joint Banking Register and information on

other facts about the operation of the Joint Banking Register may only be provided to banks,

branches of foreign banks, Národná banka Slovenska, or to a client assistance agency to the

extent necessary for the verification of data on the discharge of liabilities in respect of loans

and on the financial and economic situation of clients included or applying for inclusion in the

assistance scheme for clients who have lost their ability to repay a housing loan as

a consequence of the economic crisis, other persons and bodies under the same rules and

conditions that apply to the disclosure and provision of information classified as bank secrets

under the provisions of Article 91(2) to (9) and Article 92(4) and, with the client’s consent

under Article 91(1), also to another person named therein, if that person ensures the protection

of the information provided, at least at the same level as the operator of the Joint Banking

Register pursuant to paragraph 2 and the information provided may only be used in

accordance with the client’s consent under Article 91(1) and for the purpose for which it was

provided. Information from the Joint Banking Register on consumers shall also be made

available to other persons as specified in a separate law87c

under the same conditions as to

banks and branches of foreign banks. In relation to any other persons, the employees and

members of bodies of the joint auxiliary banking services undertaking shall keep such

information confidential in accordance with paragraph 2.

(4) Information about clients and their transactions as specified in paragraph 1,

supplied to the Joint Banking Register by a bank or a foreign bank branch, may be stored in

87b

) Article 4(3) and Articles 5, 23, and 55 of Act No 428/2002 Coll. 87c

) Article 8 of Act No 129/2010 Coll. on consumer credits and other credits and loans for consumers (and

amending certain laws).

172

the Joint Banking Register for five years from the expiration of the clients’ obligations from

transactions mentioned in paragraph 1, unless the clients demonstrably give their consent

under Article 91(1) to the storage of this information in the Joint Banking Register for

a different period; this period may not be reduced additionally. The bank or foreign bank

branch that has supplied data on clients and their transactions pursuant to paragraph 1 to the

Joint Banking Register shall demonstrably notify the joint auxiliary banking services

undertaking under paragraph 2 of the date of expiry of the clients’ obligations from

transactions mentioned in paragraph 1.

(5) The clients of banks and branches of foreign banks shall be entitled, under the

conditions stipulated by a separate law37

, to obtain at no charge information from the Joint

Banking Register regarding clients and their transactions; to obtain from the operator of the

Joint Banking Register, at least once a year and at no charge, the list of persons to whom

information on clients and their transactions has been provided from the Joint Banking

Register; and to require, at no charge and under the conditions stipulated by a separate law37

,

the Joint Banking Register to correct or remove any inaccurate, incomplete, or outdated

information in the Joint Banking Register regarding clients and their transactions.

Article 92b

(1) For the purpose of providing basic banking products pursuant to Article 27c,

banks and branches of foreign banks may, by automated or non-automated means, create

a joint register of consumers to whom a basic banking product has been provided. Through

this register, banks and branches of foreign banks shall be entitled, with or without the

consent of the consumer in the capacity of the person concerned under a separate law37

, to

make available and provide to each other, solely under the conditions stipulated by this Act

and by a separate law37

, free of charge or in consideration of the real costs incurred,

information about the basic banking products provided to consumers in the range specified in

Article 93a(1)(a), points 1 and 3.

(2) Information provided to or from the joint register of consumers to whom a basic

banking product has been granted shall continue to be subject to banking secrecy. Information

from the joint register and information about other facts about the operation of this register

may only be provided to banks and branches of foreign banks. In relation to any other

persons, the employees and members of bodies of the joint auxiliary banking services

undertaking shall keep such information confidential.

(3) The joint register of consumers to whom a basic banking product has been

provided shall be equally subject to the provisions of Article 92a(2), (4) and (5).

Article 92c

For the purposes of exercising its powers and performing its tasks under this Act and

separate regulations1a

and for statistical purposes, the Ministry may request the association86f

of banks and foreign bank branches to release a statement, explanation, and other data and

information concerning the activity of that association or its members. For the purposes of

such cooperation, the association in question may collect and process data and information

from its members in order to meet the Ministry’s request.

Article 93

173

(1) The employees of banks and foreign bank branches, members of their statutory or

supervisory bodies, mortgage controllers and their deputies, and persons doing translations or

conducting activities under Article 92(3) shall keep confidential any matters relevant to the

interests of the bank or foreign bank branch concerned and their clients, unless this Act

provides otherwise. The aforementioned persons may be exempted from this obligation by the

statutory body of the bank or chief executive officer of the foreign bank branch concerned

owing to reasons listed in Article 91(3) to (7), and Article 92(1) to (5). The confidentiality

requirement as defined in this paragraph shall not apply to persons assigned to exercise

banking supervision.

(2) The employees and members of bodies of a designated legal person9 ensuring the

provision of payment and settlement services shall not disclose any matters relating to

payment and settlement services to any third person, except to Národná banka Slovenska

performing tasks under this Act or under a separate regulation8 and to the Resolution Council

performing tasks under this Act or under a separate regulation30zx

.

(3) The confidentiality obligation shall remain in effect after the termination of the

employment relationship or other legal relationship or after the term of office pursuant to

paragraphs 1 or 2.

(4) The provisions of paragraphs 1 to 3 are without prejudice to the obligation to

prevent or report a criminal offence in accordance with a separate law88

.

Article93a

(1) For the purposes of ascertaining, reviewing, and checking the identity of clients

and their proxies, for the purposes of conducting and executing transactions with clients, and

for other purposes listed in paragraph 3, the clients and their proxies shall, when entering into

a transaction, meet the request of the bank and foreign bank branch:

(a) to provide:

1. if a natural person is concerned, including a natural persons representing a legal

person, personal identification data88a

such as first name, last name, address of

permanent residence, address of temporary residence, birth registration number, if

assigned, date of birth, citizenship, and the type and number of the identity document;

and, if a natural persons engaged in business is concerned, the field of business,

address of the place of business, designation of the official register or other official

record in which the person is registered, and the number of entry in this register or

record;

2. if a legal person is concerned, identification data such as name, company registration

number, if assigned, registered office address, field of business or other activities,

organisational units, address of the place of business and any other place where

business activities are performed, list of statutory body members and data on them as

specified under point 1, list of partners holding more than 10% of the share capital or

voting rights of this legal person, including their identification data such as name,

legal form, registered office address, company registration number, and country ISO

code (for legal persons), or data as specified under point 1 (for natural persons), as

well as the designation of the official register or other official record in which the

88

) The Criminal Code. 88a

) Article 3 of Act No 428/2002 Coll.

174

relevant legal person is registered,88b

and the number of its entry in this register or

record;

3. a contact telephone number, fax number, and electronic mail address, if any;

4. documents and data proving and documenting:

4a the client’s ability to discharge the liabilities arising from transactions;

4b the required coverage of liabilities arising from transactions;

4c authorisation for representation, where a proxy is involved;

4d the fulfilment of other requirements and conditions for the conclusion and

execution of a transaction, stipulated by this Act or by separate regulations or

agreed with the bank or foreign bank branch concerned;

(b) to enable the following to be obtained by photocopying, scanning, or other means of

recording:

1. personal identification data88a

from an identity document, including degree, first name,

last name, maiden name, birth registration number, date of birth, place and district of

birth, address of permanent residence, address of temporary residence, citizenship,

record of any restriction in legal capacity, type and number of the identity document,

issuing authority, and the date of issue and date of expiry of the identity document;

and

2. additional information from documents proving the information to which

subparagraph (a) applies.


and their proxies, for the purposes of preparing, conducting and executing transactions with

clients, and for other purposes listed in paragraph 3, banks and branches of foreign banks shall

be entitled, for each transaction, to request from clients and their proxies data in the range

specified in paragraph 1 and to request such data repeatedly for each transaction in the manner

specified in paragraph 1(b); they shall also be entitled, when concluding and executing

transactions via the telephone service of electronic communications, to process for such

purposes, with or without obtaining the consent of or informing the clients or their proxies,

biometric data from clients or their proxies, including voice biometrics. Clients and their

proxies shall satisfy each such request received from a bank or a foreign bank branch.


and their proxies, for the purposes of concluding and executing transactions with clients, for

the purposes of protecting and enforcing their rights against clients, for the purposes of

documenting their operations, for the purposes of exercising supervision over their operations,

and for the purposes of performing the tasks and duties of a bank or a foreign bank branch

hereunder or under separate regulations88c

, banks and branches of foreign banks shall be

entitled, with or without obtaining the consent of and informing the persons concerned88d

, to

88b

) For example, Act No 530/2003 Coll. on the Commercial Register (and amending certain laws); Articles 3a

and 27 to 33 of the Commercial Code; Article 2(2) and Articles 10 and 11 of Act No 34/2002 Coll. on

foundations (and amending the Civil Code), as amended; Article 9(1) and (2) and Article 10 of Act No

147/1997 Coll. on non-investment funds (and amending Act No 207/1996 Coll.); Article 9(1) and (2) and

Article 11 of Act No 213/1997 Coll. on non-profit organisations providing services beneficial to the public

interest, as amended by Act No 35/2002 Coll.; Articles 6, 7, 9, and 9a of Act No 83/1990 Coll. on the

association of citizens, as amended; Article 6(1) and Article 7 of Act No 182/1993 Coll. on ownership of

apartments and non-residential premises, as amended; Article 4(3) of Act No 515/2003 Coll. on the

organisation of local state administration (and amending certain laws). 88c

) For example, Act No 367/2000Coll., as amended; Act No 431/2002Coll., as amended by Act

No 562/2003Coll.; and Act No 395/2002Coll. on archives and registries (and amending certain laws). 88d

) Articles 4(5) and 7(3) of Act No 428/2002 Coll.

175

ascertain, acquire, record, store, use or otherwise process88e

personal data and other data in the

range specified in paragraph 1, Article 91(1), Article 38(3) and Article 92a; in so doing, banks

and branches of foreign banks shall be entitled, by automated or non-automated means, to

make copies of the identity documents and process birth registration numbers88f

and other data

and documents in the range specified in paragraph 1, Article 91(1), Article 38(3) and

Article 92a.

(4) Banks and branches of foreign banks shall, with or without obtaining the consent

of or informing the persons concerned88d

, make available and provide88g

for processing the

data specified in paragraphs 1 to 3, Article 91(1), Article 38(3), and Article 92a to other

persons determined by law only under the conditions stipulated by this Act or by a separate

law88h

and to Národná banka Slovenska for the purposes of maintaining the register of bank

loans and guarantees and performing tasks, activities, and supervision under to this Act and

separate laws. For the purposes specified in paragraph 3, Národná banka Slovenska shall be

entitled to process, make available and provide88g

to banks and branches of foreign banks

from its information system the data specified in paragraphs 1 to 3, Article 91(1), and

Article 92a and registered in the register of bank loans and guarantees.

(5) Banks and branches of foreign banks shall be entitled, with or without obtaining

the consent of or informing the persons concerned88d

, to make available and provide88g

the

data specified in paragraphs 1 to 3, Article 91(1), Article 38(3) and Article 92a, from their

information system only to persons and bodies which are required by law to provide or which

are entitled by law to provide information that is protected under banking secrecy, but only in

the range specified for the provision of information that is protected under banking secrecy.

(6) Banks and branches of foreign banks may make available and provide abroad the

data specified in paragraphs 1 to 3, Article 91(1), Article 38(3) and Article 92a only under the

terms and conditions stipulated by a separate law88i

or where so stipulated by an international

treaty binding upon the Slovak Republic and taking precedence over the laws of the Slovak

Republic.

(7) The premises of banks, branches of foreign banks, and Národná banka Slovenska,

as well as automated teller machines and currency exchange machines located outside the

premises of banks and branches of foreign banks, may be monitored using video cameras or

sound recording equipment even where there is no notice that the area is under

surveillance;88ia

the recordings may be used to reveal criminal acts, detect and search for the

perpetrators, and in particular to ensure effective protection against money laundering and

terrorist financing, to uncover illegal financial operations, judicial proceedings, criminal

proceedings, misdemeanour proceedings, and to supervise the discharge of obligations

imposed by law on banks and branches of foreign banks.88ia

Any such video or audio

recording made by a bank, foreign bank branch or Národná banka Slovenska shall be handed

over without delay to the authority mentioned in Article 91(4)(b), (g) and (o), if it so requests.

If a recording is not used for these purposes, then it shall be destroyed without delay by the

person who made it, after the expiration of thirteen months after its making.88ia

88e

) Article 4(1)(a), (b) and (c), Article 7(3), (5) second sentence and (6) second sentence, and Articles 8(2) and

10(6) of Act No 428/2002 Coll. 88f

) Article 2 of Act No 301/1995 Coll. on the personal identification number. 88g

) Article 7(6) of Act No 428/2002 Coll. 88h

) For example, Article 12(1) and (2) and Article 22b of Act No 118/1996 Coll., as amended. 88i

) Articles 23 and 55 of Act No 428/2002 Coll., as amended by Act No 602/2003 Coll. 88ia

) Articles 10(7) and 13(7) of Act No 428/2002 Coll.

176

(8) Banks shall be entitled to process the personal data of clients and other persons

concerned for the purpose of assessing risks related to a planned transaction between the

client and the bank in the scope defined in paragraph 1(a). A prior approval issued by

Národná banka Slovenska under Article 30 shall include a decision of Národná banka

Slovenska on whether the processed personal data requested by a bank in its application for

prior approval correspond to the purpose of their processing in terms of scope, content, and

method of processing or use, whether they are compatible with the given purpose of

processing, whether they are essential to achieve this purpose, or whether they are out of date

in time and subject-matter terms in relation to this purpose.

Article93b

(1) Banks and branches of foreign banks shall offer to their clients an irrevocable

proposal for the conclusion of an arbitration agreement88j

to the effect that their mutual

disputes that may arise from transactions [Article 5(i)] shall be decided in arbitration

proceedings by a standing arbitration court established under a separate law88k

; in a manner

allowing the client to select whether or not to accept the proposal to conclude an arbitration

agreement. When proposing to conclude an arbitration agreement, the bank or foreign bank

branch shall also provably inform the client of the implications of the proposed arbitration

agreement for the resolution of their mutual disputes in connection with the transactions.

(2) Banks and branches of foreign banks shall present a draft arbitration agreement

pursuant to paragraph 1 to their clients no later than on the conclusion of a transaction to

which an arbitration agreement already concluded does not apply. The client shall not be

obliged to accept a draft arbitration agreement presented pursuant to paragraph 1; should the

client not accept the draft arbitration agreement presented under paragraph 1, any disputes

that may arise from a transaction with such client shall be resolved through a procedure in

accordance with separate regulations88l

.

(3) The provisions of Article 93a shall be likewise applied to a standing arbitration

court established under a separate law88k

, namely to the provision, acquisition, disclosure and

processing of data for the purposes of proceedings before and decisions taken by such

arbitration court in respect of disputes between clients and their banks or foreign bank

branches, and also for the purpose of documenting the activities of this standing arbitration

court. Such standing arbitration court shall, however, make available and provide88g

the data

specified in Article 93a(1) to (3), Article 91(1), Article 38(3), and Article 92a only to Národná

banka Slovenska for the purposes of exercising powers, supervision, and activities under this

Act and separate laws, and only to parties to arbitration proceedings before such standing

arbitration court in the scope necessary for the purposes of arbitration proceedings.88m

PART FIFTEEN

PROCEEDINGS BEFORE NÁRODNÁ BANKA SLOVENSKA

Article 94

88j

) Article 4(1) and (2) of Act No 244/2002 Coll. 88k


Act No 244/2002 Coll. 88l

) For example, the Civil Dispute Procedure Code, Act No 233/1995 Coll., as amended. 88m

) Act No 244/2002 Coll.

177

(1) Proceedings in matters assigned to Národná banka Slovenska under this Act shall

be governed by a separate law89

, unless this Act or a separate law89a

provides otherwise.

(2) Národná banka Slovenska shall decide in first instance on an application as

referred to in Articles 30 to 32 within nine months of the date of receipt of a complete

application or an application for approval of a change in a bank’s articles of association under

Article 9(4) within thirty days of the date of receipt of a complete application or an

application for prior approval of the nomination and appointment of persons under Article

9(4) within two months of the date of receipt of a complete application. An application for

approval or prior approval under Article 9(4) is to be submitted by the bank concerned. An

application for prior approval to elect or appoint a member of the bank’s statutory body or

supervisory board, or to appoint a senior employee, may also be submitted by any of the

shareholders with a qualifying holding in the bank, provided that the election or removal of

such staff members falls within the competence of the bank’s general meeting and that the

duties of these employees are linked to the duties of statutory body members.

(3) In proceedings as described in paragraph 2, Národná banka Slovenska may, before

issuing its decision on the matter, carry out an on-site inspection at the bank to check, if

necessary, whether the relevant conditions are met. If Národná banka Slovenska finds that the

conditions have been met, it shall make an official record of that fact. This record shall

include a description of the actual situation, an assessment of compliance with the conditions

referred to in the first sentence, any deficiencies found in the application, the time limits and

conditions for removing these deficiencies or a request to supplement the application, and any

other relevant facts.

(4) Where the decision to grant prior approval in accordance with Articles 30 to 32 is

conditional upon compliance with the requirements set out in the operative part of this

decision, the bank shall prove the meeting of these requirements to Národná banka Slovenska

within the time limit and scope determined by Národná banka Slovenska. Where fulfilment of

these requirements is not proved within this period or scope, Národná banka Slovenska shall

modify or cancel the decision. Where different time limits are set for the individual

requirements in the operative part, the bank shall prove the meeting of these requirements to

Národná banka Slovenska within the respective time limits; otherwise Národná banka

Slovenska shall cancel the decision when, with regard to the prescribed time limits, the

meeting of the last requirement to be proved is not demonstrated.

PART SIXTEEN

COMMON, TRANSITIONAL AND FINAL PROVISIONS

Article114a

This Act transposes the legally binding acts of the European Union listed in the Annex

hereto.

Article 114b

89

) Act No 747/2004 Coll. on financial market supervision (and amending certain laws). 89a

) For example, Act No 310/1992 Coll., as amended.

178

(1) Národná banka Slovenska shall perform the tasks and exercise the powers of

a competent supervisory authority13h

in the Slovak Republic under a separate regulation30x

,

delegated Commission directive on the issuance of regulatory technical standards or

implementing Commission directive on the issuance of implementing technical standards

related to a separate regulation30x

issued at the suggestion of the European supervisory

authority (European Banking Authority).30zg

Unless a separate regulation30x

, delegated

Commission directive on the issuance of regulatory technical standards or implementing

Commission directive on the issuance of technical standards provide otherwise, Národná

banka Slovenska shall proceed in performing these tasks and exercising these powers in

accordance with the provisions of this Act and separate regulations.90

(2) Národná banka Slovenska as a competent supervisory authority13h

shall apply

national discretions under a separate regulation30x

, stipulate conditions for the exercise of

national discretions in the Slovak Republic, and report these national discretions to the

Commission.

(3) In a decree23


Slovenska shall stipulate requirements, limits, methods, levels, percentage rates, proportions,

ratios, indicators, and exceptions for the implementation of Articles 4, 6, 8, 9, 10, 11, 15, 18,

19, 24, 27, 31, 49, 78, 79, 83, 84, 89, 95, 97, 99, 116, 124, 125, 126, 129, 151, 152, 164, 178,

179, 225, 243, 244, 282, 283, 284, 311, 315, 317, 327, 329, 352, 358, 366, 380, 382, 395, 396,

400, 412, 413, 415, 416, 420, 422, 425, 450, 458, 465, 467, 468, 471, 473, 478, 479, 480, 481,

493, 495, 496, 499, and 500 of Regulation (EU) No 575/2013 of the European Parliament and

of the Council of 26 June 2013 on prudential requirements for credit institutions and

investment firms and amending Regulation (EU) No 648/2012 (OJ L 176, 27.06.2013).

Article 115

The protection of deposits held with banks and branches of foreign banks, including

interest and other financial benefits accrued on such deposits, shall be governed by a separate

regulation32

.

Article 116

The provisions of this Act shall also govern legal relations arising prior to the effective

date hereof; however, the origination of these legal relations and any claims arising therefrom

prior to the effective date hereof shall be considered pursuant to the current regulations, unless

this Act provides otherwise.

Article 117

(1) Banks that granted loans or assumed claims on loans granted before 1 January

1990, which have become classified owing to the risk that their principal may not be repaid

when and as due in full, will complete the process of loan portfolio restructuring with

government participation launched and implemented according to the current legislation.

(2) The government or, on the basis of its authorisation, the Ministry shall be entitled

to provide banks as referred to in paragraph 1 with special guarantees for the purposes of loan

portfolio restructuring.

90

) For example, Act No 566/1992 Coll., as amended, and Act No 747/2004 Coll., as amended.

179

(3) If the liabilities of a bank mentioned in paragraph 1 backed by a special guarantee

pursuant to paragraph 2 are assumed by another legal person, even a non-bank entity, the

guarantee shall be transferred along with the liabilities assumed and shall apply to the

assuming legal person, too.

(4) If, in the process of loan portfolio restructuring, a bank mentioned in paragraph 1

assigns its loan claims to any other legal person, including a non-bank entity, the requirement

set out in Article 38(1) shall apply to such legal person. A bank mentioned in paragraph 1

may, in the process of loan portfolio restructuring, assign its claims to another legal person

even if the duration of default or another condition stipulated in Article 92(8) has not been

satisfied.

Article 118

(1) If, after 1 February 1992, a bank suffered a loss on the obligatory provision of

loans under the legal regulations issued before 1 February 1992, the bank shall be entitled to

compensation for such loss from the state budget in an amount that can be documented by

loan agreements under the conditions stipulated in paragraphs 2 and 3.

(2) Banks shall inform the Ministry of the amount of their expected loss within the

time limit set for the preparation of a draft state budget for the following fiscal year.

(3) The Ministry shall compensate banks for their actually documented losses,

provided that the banks have met their obligations under paragraph 2, but only up to the

amount specified in the State Budget Act for the relevant year. Banks shall document the

actual amount of their losses to the Ministry within five calendar days from the end of the

relevant calendar month, and the Ministry shall pay them compensation for their losses within

fifteen days after the losses are documented, unless they agree otherwise.

Article 119

(1) Proceedings started but still pending a valid decision before this Act takes effect

shall be completed according to the current legislation, unless this Act provides otherwise.

From the effective date hereof, any shortcomings found in the activities of banks, branches of

foreign banks, and other persons, occurring under the current legislation and not being subject

to any proceedings under the current legislation, shall be deemed to be resolved pursuant to

this Act, provided they are also deemed to be shortcomings under this Act. From the effective

date hereof, however, measures to eliminate an unlawful state, fines, or corrective measures

may only be imposed in accordance with this Act. The legal effects of deeds that occurred in

the proceedings before this Act entered into force shall remain unaffected.

(2) The provisions of this Act shall apply to time limits that have not yet elapsed at

the date when this Act takes effect. Where the current legislation did not set time limits for the

issuance of decisions or for other acts in proceedings that have started but have not been

lawfully completed before this Act becomes effective, the time limits set in this Act shall

apply and start to run on the day when this Act takes effect; where the current legislation set

longer time limits for these acts than those defined in this Act, the time limits set in the

current legislation shall apply.

180

(3) Banks, branches of foreign banks, and other persons shall bring their legal

relations with third parties arising from activities pursued under the current legislation into

line with this Act within six months from the effective date hereof; from the same date,

however, no person may carry on an activity that is inconsistent with this Act. Every bank

shall, within twelve months of the effective date hereof, modify its articles of association so as

to comply with this Act; if a bank fails to adapt any of the provisions of its articles of

association to this Act within this time limit, such provisions shall become invalid after the

time limit has elapsed.

(4) Národná banka Slovenska may also stipulate special conditions for the financing

of mortgage and municipal loans for a period of no more than two years from the effective

date hereof for a mortgage bank already possessing a mortgage banking authorisation at the

effective date hereof, which submits a written request for the determination of such special

financing conditions.

Article 120

(1) A banking authorisation granted to a bank or a foreign bank branch under the

current legislation and valid as at the date when this Act takes effect shall be deemed to be

a banking authorisation granted under this Act. If the authorisation includes activities that are

not banking activities under Article 2(1) and (2), the banking authorisation shall expire in the

range of these activities at the effective date hereof.

(2) Application rules issued under Act No 21/1992 Coll. on banks in the wording of

subsequent regulations, which are valid as at the date when this Act enters into force, shall be

deemed to be application rules issued under this Act until new application rules are issued.

Article 121

(1) The legal form of a bank established as a state financial institution under the

current legislation shall be transformed into a joint stock company under a separate law1 by

a decision of the founder of the state financial institution to be transformed; the foregoing

does not apply to a state financial institution whose entire assets and business have been

transferred under a separate regulation92

before the end of the period set in paragraph 2.

A decision to transform a state financial institution into a joint stock company must at least

contain the following information:(a) the business name, registered office, and identification

number of the bank organised as a state financial institution before transformation;

(b) the business name and registered office of the bank organised as a joint stock company

after transformation;

(c) the line of business (activity) of the bank organised as a joint stock company after

transformation; the line of business (activity) may be defined only in the range of banking

activities the state financial institution was authorised to perform at the time of

transformation;

(d) the amount of share capital of the bank organised as a joint stock company after the

transformation; the share capital shall be equal in amount to the capital of the state

financial institution before transformation;

(e) the number, type, par value, class, and form of shares which, in accordance with Article

2(6), constitute the share capital of the bank organised as a joint stock company after

transformation;

92

) Act No 92/1991 Coll. on conditions for the transfer of State property to other persons, as amended.

181

(f) the articles of association of the bank organised as a joint stock company after

transformation attached to the decision on transformation; in addition to the elements

stipulated in a separate regulation25

, these articles of association must also contain the

elements established by this Act;

(g) the first and last names, birth registration numbers, and permanent residence addresses of

members of the statutory body of the bank organised as a joint stock company after

transformation, and a description of the manner in which they act for and on behalf of the

bank;

(h) the first and last names, birth registration numbers, and permanent residence addresses of

members of the supervisory board of the bank organised as a joint stock company after

transformation.

(2) The founder of a state financial institution shall issue a decision in accordance

with paragraph 1 without an invitation to subscribe shares within six months of the date when

this Act takes effect. A proposal to register the transformation of a state financial institution

into a joint stock company shall be submitted by the founder of the state financial institution

being transformed; attached to this proposal shall be a decision pursuant to paragraph 1,

which replaces the foundation deed and the founders’ decisions to establish a joint stock

company without an invitation to subscribe its shares and which, for the purposes of

registration in the Commercial Register, shall be a document on facts that should be entered

into the Commercial Register in respect of the transformation of a state financial institution

into a bank organised as a joint stock company. Such transformation shall take effect on the

day when the transformation is recorded into the Commercial Register, whereby all data on

the transformation shall be entered into the Commercial Register as at the same date; from the

effective date of this Act to the date of transformation, the current legislation shall apply to

the legal relations of a bank organised as a state financial institution.

(3) As of the date of transformation under paragraphs 1 and 2, the share capital of a

bank formerly organised as a state financial institution shall become a deposit of the state in

the share capital of the bank transformed into a joint stock company, with the state acquiring

shares that the share capital is divided into, whereby all shareholder rights attached to these

shares held by the state shall be exercised by the Ministry.

(4) As of the date of transformation under paragraphs 1 and 2, the banking

authorisation granted to a bank organised as a state financial institution before transformation

shall be transferred in full range to the same bank transformed into a joint stock company; the

limitation stipulated in Article 9(1) shall not apply to this transfer; the banking authorisation

shall be deemed to be a banking authorisation under this Act in accordance with the

provisions of Article 120(1).

(5) As of the date of transformation under paragraphs 1 and 2, the sources of

financing for a bank transformed into a joint stock company shall comprise:

(a) the bank’s own funds consisting of its share capital, funds, and profit for the current year;

(b) temporarily disposable borrowed funds;

(c) entrusted funds allocated from the state budget.

(6) As of the date of transformation under paragraphs 1 and 2 without liquidation, all

assets, claims, liabilities, and other commercial property of a bank organised as a state

financial institution before transformation shall be transferred in full range to the same bank

transformed into a joint stock company. Any security for the claims and liabilities of the

transforming state financial institution shall remain effective, including government

182

guarantees for liabilities incurred as a result of a decision taken by the relevant state authority,

including liabilities incurred as a result of a decision taken prior to the effective date hereof;

all rights and obligations under such security and guarantees shall be transferred in full range

to the bank transformed into a joint stock company as of the date of transformation pursuant

to paragraphs 1 and 2.

(7) Both before and after transformation pursuant to paragraphs 1 and 2, the Ministry

shall be entitled to monitor whether a bank’s activities under paragraph 1 are in accordance

with the applicable laws and other generally binding regulations, the bank’s articles of

association, and decisions taken by the bank’s general meeting. The procedure set out in

Article 91 shall not apply to the disclosure of information to the Ministry’s employees

assigned to ensure such monitoring, specifically to the extent of the subject of monitoring

specified in a written authorisation issued by the Ministry; an original copy of such written

authorisation shall be given to the bank in accordance with paragraph 1. The Ministry’s

employees assigned to perform monitoring activities shall ensure the protection of

information and documentation acquired in the course of monitoring so as to protect state

secrets, professional secrets, commercial secrets, banking secrecy, tax secrets, and to comply

with the confidentiality requirement explicitly imposed or recognised by law; the disclosure

of information and documentation acquired during monitoring for the purposes of

proceedings under this Act or separate regulations93

shall not be deemed to be a violation of

this requirement. Otherwise, the provisions of a separate regulation72

shall apply as

appropriate to such monitoring.

Article 122

Banks and branches of foreign banks shall at no charge ensure the conversion of funds

denominated in the national currencies of European Union Member States into euro, namely

funds deposited with banks and branches of foreign banks as at 31 December 2001 in

currencies set to be retired and replaced by the euro in 2002.

Article122a

Transitional provision

for amendments in force as of 1 July 2003

Legal relations arising from mortgage loan agreements concluded before 1 July 2003

shall be governed by the regulations in force at that time.

Article122b

Transitional provisions

for amendments in force as of 1 January 2004


legislation in force at that time, effective as at 1 January 2004 and granted for the provision of

payment and settlement services, shall be deemed to be a banking authorisation for the

execution of domestic fund transfers and cross-border fund transfers as from 1 January 2004,

in the scope and in the manner specified in this banking authorisation, and according to the

terms and conditions stipulated by this banking authorisation or other decisions of Národná

banka Slovenska enforceable as from 1 January 2004.

93

) The Criminal Procedure Code; Article 4(1) of Act No 171/1993 Coll., as amended by Act No 116/2000

Coll.

183

(2) As from 1 January 2004, the provisions of this Act shall also govern legal

relations that arose before 1 January 2004 in connection with banking activities or other

activities of banks or branches of foreign banks, unless provided otherwise hereunder; the rise

of such legal relations, as well as any claims arising thereunder before 1 January 2004 shall,

however, be judged by the legislation in force at that time. Unless provided otherwise

hereunder, banks and branches of foreign banks shall, by 31 December 2004 at the latest,

harmonise with this Act their legal relations with third parties, including the members of their

bodies that were set up before 1 January 2004 in connection with the banking activities or

other activities of banks and foreign bank branches; the provisions of Article 122a shall not be

prejudiced thereby. By 31 December 2044, banks shall also bring their articles of association

into line with this Act; if a bank fails to harmonise any of the provisions of its articles of

association with this Act by this date, such provisions shall become null and void after

31 December 2004. From the effective date of this Act, it shall not be possible to increase the

amount of a mortgage loan by altering the mortgage loan agreement under which a state

interest subsidy is granted, the level of which in percentage terms may not be changed during

the maturity period of the mortgage loan. If, in a mortgage loan agreement concluded before

the effective date of this Act or in another written document based on a mortgage loan

agreement and delivered to a mortgage bank before the effective date of this Act, the real

property to be pledged as security for the mortgage loan is not designated precisely or if,

before the effective date of this Act, no pledge agreement is concluded between the mortgage

bank and the client clearly designating the real estate in which a security interest will be

established to secure the mortgage bank’s claims from the mortgage loan, the mortgage bank

and the client shall meet both of these conditions within sixty days of the date when this Act

takes effect, or otherwise the claim to a state interest subsidy shall cease to exist.

(3) Receivership proceedings that commenced but were not finally concluded before

1 January 2004 and the conduct of receivership commenced but not completed before

1 January 2004 shall be completed in accordance with the legal regulations in force as at

31 December 2003. Any other proceedings commenced but not finally concluded before

1 January 2004 shall be brought to their conclusion in accordance with this Act.

(4) The Securities Registration Centre, which temporarily operates under a separate

regulation,94

shall provide, from the records it maintains, Národná banka Slovenska with

information requested thereby for the purposes of banking supervision.

(5) Until 31 December 2006 at the latest, Národná banka Slovenska may stipulate

special terms and conditions for financing mortgage loans and municipal loans also for

a mortgage bank which has so requested and which, as at 1 January 2004, has a banking

authorisation to conduct mortgage transactions. If a mortgage bank submits a written

application to Národná banka Slovenska by 1 January 2004, then, after Národná banka

Slovenska issues a valid decision on this application, the mortgage bank shall be entitled to

provide for the funding of mortgage loans and municipal loans in accordance with the

legislation in force as at 31 December 2003.

Article122c



94

) Article 163(1) and (6) and Article 163a of Act No 566/2001 Coll., as amended.

184

Supplementary supervision shall be conducted after the net worth and results of

operations of financial conglomerates for 2005 have been taken into account.

Article122d



(1) Proceedings that commenced but were not finally concluded before 1 January

2006 shall be brought to their conclusion in accordance with this Act and a separate law89

.

The legal effects of acts that occurred in the proceedings before 1 January 2006 shall be

preserved.

(2) Any on-site inspections commenced but not completed before 1 January 2006

shall be completed in accordance with this Act and separate laws89

. The legal effects of acts

that occurred during on-site inspections before 1 January 2006 shall be preserved.

Article 122e


for amendments in force as of 1 May 2006

The provisions of this Act shall also govern legal relations arising from municipal loan

agreements concluded before 1 May 2006; however, the origination of these legal relations

and any claims arising therefrom before 1 May 2006 shall be assessed according to the

regulations in force at that time.

Article 122f



(1) Banks using the internal ratings-based approach to calculate the amount of risk-

weighted exposures shall, during 2007, 2008 and 2009, have own funds equal to or more than

the amount specified in paragraph 2. Banks using the advanced measurement approach to

calculate the capital requirements for operational risk shall have own funds equal to or more

than the amount specified in paragraph 2 over the second and third calendar years after

1 January 2007.

(2) Of the total minimum capital requirement defined in the regulations in force as at

31 December 2006, own funds as referred to in paragraph 1 shall account for 95% in 2007,

90% in 2008, and 80% in 2009.

(3) Until 31 December 2007, banks may calculate their risk-adjusted assets and off-

balance sheet items according to the regulations in force as at 31 December 2006, instead of

using the standardised approach for credit risk.

(4) Where a bank proceeds according to paragraph 3:

(a) credit derivatives shall be included in the list of full-risk items and shall thereby attract

a credit weight of 100% under the regulations in force as at 31 December 2006;

(b) the values of credit equivalents for derivative instruments shall be calculated according to

the regulations in force as at 31 December 2006, irrespective of whether the on-balance

185

or off-balance sheet items arising therefrom and the values of credit equivalents are

deemed to be risk-weighted exposure amounts.

(5) Where a bank proceeds according to paragraph 3, then in respect of exposures for

which the standardised approach is used, the provisions pertaining to credit risk mitigation

under this Act shall not be applied, but the procedures established by the regulations in force

as at 31 December 2006 shall be used.

(6) Where a bank proceeds according to paragraph 3, the capital requirement for

operational risk as defined in Article 30(5)(d) shall be lowered by the percentage ratio of the

amount of the bank’s exposures for which risk-weighted exposure amounts are calculated in

accordance with the discretion mentioned in paragraph 3 to the total amount of its exposures.

(7) Where a bank proceeds according to paragraph 3, its exposures shall be subject to

the regulations in force as at 31 December 2006.

(8) Where a bank proceeds according to paragraph 3, all references to the

standardised approach for credit risk shall be construed as references to provisions on the

calculation of risk-weighted assets under the regulations in force as at 31 December 2006.

(9) Where a bank proceeds according to paragraph 3, the provisions concerning the

internal capital adequacy assessment system and those of Article 33f shall not apply before

1 January 2008 and the bank’s disclosure obligation shall be subject to the regulations in force

as at 31 December 2006.

(10) Where a bank proceeds according to paragraph 3, the provisions of Article 6(2)

shall apply before 1 January 2008 to the extent specified by the regulations in force as at

31 December 2006.

(11) Where a bank proceeds according to paragraph 3, the foreign exchange risk,

commodity risk, and risks arising from the trading book shall be subject to the regulations in

force as at 31 December 2006.

(12) Národná banka Slovenska may:

(a) for banks applying to use the internal ratings-based approach before 31 December 2009,

approve a reduction in the three-year period prescribed for the use of eligible rating

systems to a period of one year until 31 December 2009;

(b) for banks applying to use their own estimates of loss given default values or conversion

factors, approve a reduction in the approved three-year period to a period of two years

until 31 December 2008;

(c) until 31 December 2012, allow banks to continue to apply to participations under

a separate regulation, acquired prior to the entry into force of this Act, the treatment

defined in a separate regulation;

(d) until 31 December 2017, exempt from the application of the internal ratings-based

approach certain equity claims held by a bank or its subsidiary as at 31 December 2007,

under the conditions stipulated by a separate regulation.

(13) Until 31 December 2010, the exposure-weighted average loss given default for

all retail exposures, secured by residential properties and not benefiting from state guarantees,

may not be lower than 10%.

186

(14) Banks not permitted to use their own estimates of loss given default values or

conversion factors may use relevant data from two years when implementing the internal

ratings-based approach, until 31 December 2007 in regard to the observation period. Until

31 December 2010, the observation period shall be extended each year by one year.

(15) For the purpose of calculating the corresponding capital requirement, banks may

start using the advanced internal ratings-based approach for credit risk pursuant to Article

33(6) from 1 January 2008.

(16) For the purpose of calculating the corresponding capital requirement, banks may

start using the advanced approach pursuant to Article 33d(4) from 1 January 2008.

Article 122g


in force as of 1 January 2008

(1) Banks, other banks [Article 5(p)], branches of foreign banks, branches of other

foreign banks [Article 5(r)], foreign banks, and other foreign institutions carrying on banking

activities in the territory of the Slovak Republic [Article 11(1) to (3)] shall, no later than three

months before the euro introduction date in the Slovak Republic, prepare and implement

measures, rules, and procedures through which they shall, while conducting banking

activities, ensure continuous and undisturbed changeover from the Slovak currency to the

euro, in particular measures, rules, and procedures applied in the redenomination, conversion,

and rounding of funds which they hold as deposits or which are provided by them in the

Slovak currency, to the euro.

(2) Banks, other banks, branches of foreign banks, branches of other foreign banks,

foreign banks, and other foreign institutions conducting banking activities in the territory of

the Slovak Republic shall, no later than three months before the euro introduction date in the

Slovak Republic and for a period of at least six months following the euro introduction date in

the Slovak Republic, publish on their website and on their business premises used in

communicating with clients relevant information on measures, rules, and procedures that will

be implemented, are implemented, or were implemented for ensuring the changeover from the

Slovak currency to the euro.

(3) As at the euro introduction date in the Slovak Republic, banks, other banks,

branches of foreign banks, branches of other foreign banks, foreign banks, and other foreign

institutions conducting banking activities in the territory of the Slovak Republic shall, free of

charge, ensure and perform redenomination and conversion of the funds which they hold as

deposits or which are provided by them in the Slovak currency, to the euro, at the conversion

rate stipulated by this Act and separate legal regulations on the introduction of the euro in the

Slovak Republic.95

The same obligation shall apply to the redenomination and conversion of

funds in any other currency, if that currency ceases to exist and is replaced by the euro, as at

the date of its replacement by the euro and in accordance with the fixed conversion rate set for

the conversion of that currency to the euro and with other rules applicable to the changeover

from that currency to the euro.

Article 122h


95

) Act No 659/2007 Coll.

187

Banks, other banks, branches of foreign banks, branches of other foreign banks,


the Slovak Republic shall, from the effective date of this Act to the euro introduction day in

the Slovak Republic, accept valid Slovak coins in payments and cash deposits, free of charge

and without limiting their total number; while accepting valid Slovak coins free of charge,

they shall not charge any fees, costs or consideration for their acceptance, processing,

counting, or depositing on accounts, nor for any other procedures or activities related to the

acceptance of valid Slovak coins.

Article 122i


in force as of 1 January 2009

(1) Prior approval proceedings under Article 28(1)(a), commenced but not finally

concluded before 1 January 2009, shall be brought to their conclusion in accordance with the

regulations in force at that time.

(2) Funds held on current accounts, deposit accounts, or passbook accounts,

certificates of deposit or other materialised securities, which serve in the stage of preparation

for the euro changeover as collateral to cover the value of euro banknotes or euro coins

provided to clients for their frontloading or sub-frontloading under a separate regulation,96

shall not be subject to decisions issued under separate regulations97

until the end of dual cash

circulation under a separate regulation on the euro introduction in the Slovak Republic.

(3) Subsequent to the euro changeover, no later than on the second business day

following the euro introduction date, banks and branches of foreign banks shall block the

funds held on accounts on the basis of an execution order or notification of the

commencement of execution by establishing claims on these accounts under separate

regulations97

, which shall be delivered to the bank or foreign bank branch concerned on the

last business day prior to the euro introduction date or on the first business day following the

euro introduction date.

Article 122j


in force as of 1 March 2009

Banks, other banks, branches of foreign banks, branches of other foreign banks,


the Slovak Republic shall, from 1 March 2009 to 31 August 2009, accept euro banknotes and

euro coins in cash deposits free of charge and without limitations to their nominal structure

and total number; while accepting euro banknotes and euro coins free of charge, they shall not

charge any fees, costs or consideration for their acceptance, processing, or counting, nor for

any other procedures or activities related to cash deposits. This is without prejudice to the

96

) Guideline No ECB/2006/9 (2006/525/EC) of the European Central Bank of 14 July 2006 on certain

preparations for the euro cash changeover and on frontloading and sub-frontloading of euro banknotes and

coins outside the euro area (OJ L 207, 28.7.2006). 97

) For example, Act No 233/1995 Coll., as amended; Act No 65/2001 Coll. on the enforcement of judicial

claims, as amended.

188

provisions of separate regulations on cash circulation98

and on the exchange of Slovak

banknotes and Slovak coins for euros.99

Article 122k


for amendments in force as of 1 December 2009

A banking authorisation granted to a bank or a foreign bank branch under the existing

legislation and effective as at 30 November 2009, applying to the execution of domestic and

cross-border funds transfers and to the issuance and administration of payment instruments,

shall, as from 1 December 2009, be deemed to be a banking authorisation granted for the

provision of payment and settlement services in the scope and manner specified therein and

under the terms and conditions stipulated thereby or by other decisions of Národná banka

Slovenska legally enforceable as at 1 December 2009.

Article 122l


for amendments in force as of 1 June 2010

Banks and branches of foreign banks shall commence providing a basic banking

product within three months of the date when the generally binding legal regulation issued

under Article 27c(5) enters into force.

Article 122m


for amendments in force as of 1 April 2011

(1) Until 31 December 2012, Národná banka Slovenska shall issue a joint decision in

accordance with Article 47(15)(c) within six months.

(2) The provisions of Article 75(4)(h), Articles 75(6) to (8) and 85a(1), Article

85a(3)(a), and Article 85b(9) of the regulation effective from 1 April 2011 shall first apply to

mortgage loan agreements concluded after 1 April 2011.

(3) Banks using the internal ratings-based approach to calculate the amount of risk-

weighted exposures shall, by 31 December 2011, have own funds equal to or more than the

amount mentioned in paragraphs 4 and 5. Banks using the advanced measurement approach to

calculate the capital requirement for operational risk shall, by 31 December 2011, have own

funds equal to or more than the amount mentioned in paragraphs 4 and 5.(4) The amount of

own funds pursuant to paragraph 3 shall constitute 80% of the total minimum capital

requirement stipulated by the regulations in force as at 31 December 2006.

(5) The amount of own funds pursuant to paragraph 3 shall constitute 80% of the total

minimum capital requirement stipulated by the regulations in force as at 31 March 2011, with

the prior approval of Národná banka Slovenska and provided that the bank started to use the

98

) For example, Articles 17a and 17b of Act No 566/1992 Coll. as amended. 99

) Articles 3(4) to (9) of Act No 659/2007 Coll. on the introduction of the euro in the Slovak Republic (and

amending certain laws).

189

internal models-based approach or advanced measurement approach to calculate its capital

requirements on or after 1 January 2010.

(6) Until 31 December 2012, the exposure-weighted average loss given default for all

retail exposures secured by residential properties and not benefiting from state guarantees

may not be lower than 10%.

Article 122n



(1) The provisions of this Act shall also apply to legal relations established under this

Act before 1 December 2011; however, the origination of such legal relations and any claims

arising therefrom before 1 December 2011 shall be assessed under the regulations effective

until 30 November 2011, unless this Act provides otherwise in the following paragraphs.


regulations in force before 30 November 2011 and effective as at 1 December 2011, applying

to the provision of payment and settlement services, shall, as from 1 December 2011, be

deemed to be a banking authorisation granted for payment and settlement services, and for

electronic money issuance and administration in the scope and manner specified therein and

under the terms and conditions stipulated thereby or by other legally enforceable decisions of


(3) Banks shall establish and apply remuneration principles in accordance with this

Act by 31 July 2012 at the latest.

(4) Banks and other persons as referred to in Article 23a(1) shall bring into line with

this Act the clauses of employment contracts, mandate contracts, or other mutual agreements

in which the conditions of remuneration or other benefits offered to persons mentioned in

Article 23a(1) are determined, by 31 July 2012 at the latest; where banks and other persons

under Article 23a(1) fail to bring the clauses of their mutual agreements into line with this Act

by 31 July 2012, these clauses shall become null and void on 1 August 2012.

(5) Where the term ‘credit institution’ is used in other generally binding legal

regulations, it shall mean a ‘bank’ or ‘electronic money institution’. Where the term ‘foreign

credit institution’ is used in other generally binding legal regulations, it shall mean a ‘foreign

bank’ or ‘foreign electronic money institution’.

Article 122o



(1) Mortgagors who have taken out a mortgage loan after 31 December 2011 to repay

another mortgage loan received before 1 July 2003, to which a state interest subsidy belongs,

shall be entitled to receive a state interest subsidy in the amount approved under the

regulations in force before 1 July 2003, provided that:

(a) the interest rate on the new mortgage loan is lower than the interest rate on the mortgage

loan granted before 1 July 2003 to which a state interest subsidy belongs, and

190

(b) the maturity period of the new mortgage loan is no longer than the residual maturity of the

mortgage loan granted before 1 July 2003 to which a state interest subsidy belongs.

(2) The provisions of Article 84(6), as amended with effect from 1 January 2012,

shall equally apply to new mortgage loans as referred to in paragraph 1. The provisions of

Article 84(6), as amended with effect from 1 January 2012, shall be first applied only after

31 December 2011.

(3) The provisions of Article 75(6), second sentence, as amended with effect from

1 January 2012, concerning:

(a) the prohibition on charging interest, fees, or other costs incurred in connection with the

repayment of a mortgage loan before maturity, shall be first applied when, after

31 December 2011, the initial rate fixation period of the mortgage loan expires or the

interest rate on the mortgage loan is next changed;

(b) the notification obligation of mortgage banks, shall be first applied when the initial rate

fixation period of a mortgage loan expires on 15 March 2012 or when the interest rate on

the mortgage loan is changed on 15 March 2012.

Article 122p



(1) The provisions of this Act shall also apply to legal relations established under this

Act before 31 December 2011; however, the origination of such legal relations and any claims

arising therefrom before 31 December 2011 shall be assessed under the regulations in force

before 30 December 2011.

(2) Proceedings that commenced but were not finally concluded before 31 December

2011 shall be brought to their conclusion in accordance with this Act. The legal effects of acts

that occurred in the proceedings before 31 December 2011 shall be preserved.

Article 122q

Temporary provisions

for amendments in force as of 1 September 2012

(1) Banks and branches of foreign banks shall start providing a basic banking product

as from 1 July 2013 at the latest.

(2) The provisions of Article 75(6), second sentence, as amended with effect from

1 January 2012, concerning:

(a) the prohibition on charging interest, fees, or other costs incurred in connection with the

repayment of a mortgage loan before maturity, shall be first applied when, after

31 August 2012, the initial rate fixation period of the mortgage loan expires or the

interest rate on the mortgage loan is next changed;

(b) the notification obligation of mortgage banks shall be first applied when the initial rate

fixation period of a mortgage loan expires on 15 November 2012 or when the interest rate

on the mortgage loan is changed on 15 November 2012.

191

(3) The provision of Article 75(11), as amended with effect from 1 September 2012,

shall be first applied when the initial rate fixation period of a mortgage loan expires on

15 January 2013, or when the interest rate on a mortgage loan is changed on 15 January 2013.

(4) Mortgage banks shall, by 1 November 2012 at the latest, bring their general terms

and conditions for the provision of mortgage loans into line with the provisions of Article

75(1)(h).

Article 122r



A banking authorisation granted to a bank or a foreign bank branch under the existing

regulations and effective as at 1 January 2013, applying to trading in gold as a money market

instrument for own account, shall, as from 1 January 2013, be deemed to be a banking

authorisation for trading in gold for own account, in the scope and manner specified therein

and under the terms and conditions stipulated thereby or by other decisions of Národná banka

Slovenska legally enforceable as at 1 January 2013.

Article 122s


for amendments in force as of 10 June 2013

(1) The provisions of this Act shall, as from 10 June 2013, also apply to legal

relations established under this Act before 10 June 2013; however, the origination of these

legal relations and any claims arising therefrom before 10 June 2013 shall be assessed under

the regulations in force before 9 June 2013.

(2) Proceedings that commenced but were not finally concluded before 10 June 2013

shall be brought to their conclusion under this Act and a separate law89

, while the time limits

that have not yet elapsed at the date when this Act takes effect shall be subject to the

provisions of this Act and a separate law. The legal effects of acts that occurred in the

proceedings before 10 June 2013 shall be preserved.

(3) Any on-site inspections commenced but not completed before 10 June 2013 shall

be completed in accordance with this Act and a separate law89

. The legal effects of acts that

occurred during on-site inspections before 10 June 2013 shall be preserved.

(4) The prohibition mentioned in Article 37(21) shall be first applied to the payment

of fees, cost reimbursement, or other payments for the registration, management or

administration of loans or accounts, or for the cancellation of a loan account, which is

a condition for a credit relationship, due after 9 June 2013.

(5) The provisions of Article 75(12) shall be first applied to the repayment of

mortgage loans of part thereof before maturity after 9 June 2013.

Article 122t


for amendments in force as of 1 August 2014

192

(1) With effect from 1 August 2014, the provisions of this Act shall also apply to legal

relationships established under this Act before 1 August 2014; such legal relationships and the

claims arising therefrom, however, shall be assessed on the basis of the regulations effective

until 31 July 2014, unless paragraphs 2 and 3 provide otherwise.

(2) Banks shall, in accordance with Article 33b(1), maintain a capital conservation

buffer of 1.5% of the total risk exposure amount calculated in accordance with a separate

regulation30v

, from 1 August 2013 to 30 September 2014.

(3) Banks and other persons as referred to in Article 23a(1) shall, by 30 November

2014 at the latest, bring into line with this Act the provisions of their labour contracts,

mandate contracts or other agreements, in which the terms of remuneration payment or the

payment of other benefits to persons are agreed in accordance with Article 23a(1); if any of

the banks or other persons mentioned in Article 23a(1) fail to bring certain provisions of their

contracts into line with this Act by 30 November 2014, these provisions shall become null and

void with effect from 1 December 2014.

Article 122u



(1) The provisions of Article 36a(1), which take account of Article 75(1)(h) effective

from 1 January 2015 and Article 75(4)(a) to (g), including the deviations referred to in Article

36a(2) and (3), shall be first applied to loan agreements concluded after 31 December 2014.

(2) The provisions of Article 36a(1), which take account of the provisions of Article

75(6), (10) and (11), including the deviations referred to in Article 36a(2) and (3), shall be

first applied to loans with an interest rate fixation period expiring on 15 March 2015 or to

loans with an interest rate changed on 15 March 2015.

(3) The provisions of Article 36(1), which take account of the provisions of Article

75(12), including the deviations referred to Article 36a(2) and (3), shall be first applied to

loans repaid before maturity in full or in part after 31 December 2014.

(4) The provisions of Article 36a(4) and (5) shall be first applied to loan agreements

concluded after 31 December 2014.

(5) The provisions of Article 75(1)(h), effective from 1 January 2015, shall be first

applied to loan agreements concluded after 31 December 2014.

Article 122v



Banks shall maintain a G-SII buffer on a consolidated basis in accordance with Article

33d(4) in the following amounts:

(a) from 1 January 2016 to 31 December 2016: 25% of the buffer;

(b) from 1 January 2017 to 31 December 2017: 50% of the buffer;

(c) from 1 January 2018 to 31 December 2018: 75% of the buffer;

(d) from 1 January 2019 to 31 December 2019: 100% of the buffer.

193

Article 122w



(1) The provisions of this Act also apply to legal relationships established before

1 January 2016; the establishment of such legal relationships and the claims arising therefrom

before 1 January 2016, however, shall be assessed according to the regulations in force until

31 December 2015.

(2) Basic banking products provided to consumers before 31 December 2015 shall be,

with effect from 1 January 2016, deemed to be basic banking products within the meaning of

Article 27c, effective from 1 January 2016.

(3) Banks and branches of foreign banks shall, no later than 1 February 2016, start

providing basic banking products as defined in Article 27c (effective from 1 January 2016)

and standard accounts as defined in Article 27d.

(4) Banks and branches of foreign banks shall, by 31 January 2016, inform consumers

of any change in the general agreement affecting the provision of basic banking products

within the meaning of Article 27c (effective from 1 January 2016) and standard accounts

within the meaning of Article 27d. Compliance with the reporting requirement under Article

37(1) and under a separate regulation100

shall not be subject to a time limit.

(5) The Ministry shall, for the first time, inform the Commission in accordance with

Article 27d(21) by 18 September 2018.

(6) Národná banka Slovenska shall, for the first time, inform the Commission in

accordance with Article 27d(22) by 18 September 2018.

Article 122x


for amendments in force as of 1 July 2016

In proceedings commenced before 1 July 2016 which have not yet been completed

with a final decision, the regulations in force until 30 June 2016 are to be applied.

Article 122y



Legal relations established and governed by this Act as in force before 1 January 2017

are governed by this Act as in force from 1 January 2017; the establishment of such legal

relations, as well as any claims arising therefrom before 1 January 2017 shall, however, be

assessed in accordance with the regulations in force until 31 December 2016, and time limits

that have not expired before 1 January 2017 are subject to the provisions of the Act as in force

from 1 January 2017 and the provisions of a separate regulation89

.

100


194

Article 122z

Repealing provisions

Decree No 11/2010 of Národná banka Slovenska of 8 June 2010 stipulating methods

for valuing positions recorded in the banking book and details about the valuation of positions

recorded in the banking book, including the frequency of such valuations (Notification

No 278/2010 Coll.), as amended by Decree No 4/2012 (Notification No 45/2012 Coll.), is

hereby repealed.

Article123

The following laws are hereby repealed: Act No 21/1992Coll. on banks, as amended

by Act No 264/1992Coll.; Act No 249/1994Coll. of the National Council of the Slovak

Republic; Act No 374/1994Coll. of the National Council of the Slovak Republic; Act

No 58/1995Coll. of the National Council of the Slovak Republic; Act No 233/1995Coll. of

the National Council of the Slovak Republic; Act No 58/1996Coll. of the National Council of

the Slovak Republic; Act No 118/1996Coll. of the National Council of the Slovak Republic;

Act No 386/1996Coll. of the National Council of the Slovak Republic; Act No 12/1998Coll.;

Act No 44/1998Coll.; Act No 170/1998Coll.; Act No 252/1999Coll.; Act No 215/2000Coll.;

Act No 329/2000Coll.; Act No 367/2000Coll.; and Act No 149/2001Coll.

Article 123a

Decree No 290/2010 Coll. of the Ministry of Finance of the Slovak Republic on the

range and method of payment services provided in euro for basic banking products is hereby

repealed.

SECTION II

Effective date

This Act shall enter into force on 1 January 2002, with the exception of Section V,

which entered into force on the promulgation date, and Section I, Article 2(8), part of the

sentence after the semicolon, Articles 11 to 20 and Articles 45(2) and 49(3), which shall enter

into force on the effective date of the Treaty on the Accession of the Slovak Republic to the

European Union (1 May 2004).

Act No 430/2002Coll. entered into force on 1 September 2002.

Act No 510/2002 Coll. entered into force on 1 January 2003, with the exception of

Section III, points 1 to 10, 12, 14, 17 to 22, and Section VI, which entered into force on

1 September 2002, and with the exception of Section I, Articles 12(2), 13(3) and 15(2), the

first sentence of Article 16(1), the second sentence of Article 16(2), the second sentence of

Article 16(3), the second sentence of Article 17(2), Article 19, the second sentence of

Article 20, Article 25(2) and (3), Article 36(6), Article 65(1)(b), 65(3) and 65(6); Section III,

point 13, the second sentence of Article 99(16), and point 16, Article 107a(8); and Section IV

point 4, Article 14(7), which entered into force on the effective date of the Treaty on the

Accession of the Slovak Republic to the European Union (1 May 2004).

195

Act No 165/2003 Coll. entered into force on 1 July 2003, with the exception of

Section I, Article 10(3) and 6), which entered into force on 1 January 2004.

Act No 603/2003Coll. entered into force on 1 January 2004.

Act No 215/2004Coll. entered into force on 1 May 2004.

Act No 554/2004Coll. entered into force on 1 January 2005.


Sections XVII, XVIII, XIX and XX, which entered into force on 1 January 2005, and with the

exception of Section I, the third sentence of Article 45(5), and Section XII, point 1

(Article 21(2)(d)), point 3 (Article 71a) and point 4 (Article 72a), which entered into force on

1 February 2005.

Act No 69/2005 Coll. entered into force on 1 May 2005, with the exception of

Section IV, which entered into force on 1 January 2006, and Section V, point 4, which entered

into force on the promulgation date (26 February 2005).

Act No 340/2005Coll. entered into force on 1 September 2005.

Act No 341/2005 Coll. entered into force on 1 September 2005, with the exception of

Section I, point 3, which entered into force on 1 January 2006.

Act No 214/2006 Coll. entered into force on 1 May 2006.


Section VI, which entered into force on the promulgation date; Section III, point 2, which

entered into force on 30 December 2006; and Section II, point 1, which entered into force on

1 January 2008.

Act No 209/2007 Coll. entered into force on 1 November 2007, with the exception of

Section I, points 2, 6, 7, 11 to 14, 16, 18, 23 to 25, 27, 57, 58, 60, 73 to 81, 91, 93 to 96, 100

to 102, 106, 116, 117, 124 to 136, 139, 144 to 151, 154 to 165; Section II; Section IV, points

5 to 8; Section V, items 2, 27, 41, 42, 44, 49, 50, 56, 57, 65, 66; and Section VI, points 1, 3, 5

to 8, 10 to 32, 34 to 39, which entered into force on 1 May 2007.


Section X, point 1 [Article 2(2)(c) points 1 and 2, Articles 38(1) and 67(2), and Article

87(2)(d)] and points 10 to 12 [Article 84(2) and (3), Article 85a(2) and (4), Article 87(2)(i)],

which entered into force on the day when the euro was introduced in the Slovak Republic.

Act No 297/2008 Coll. entered into force on 1 September 2008.


Section III, points 35 to 37 [Articles 68, 69, 71 and Article 72(4)] and point 49 [Article 122h],

which shall enter into force on the promulgation date.

Act No 66/2009 Coll. entered into force on 1 March 2009.

Act No 186/2009 Coll. entered into force on 27 May 2009.

Act No 276/2009 Coll. entered into force on 7 October 2009.

Act No 492/2009 Coll. entered into force on 1 December 2009, with the exception of

Section XI, point 17 [Articles 88a to 88d], which entered into force on 1 April 2010.

Act No 129/2010 Coll. entered into force on the promulgation date, with the exception

of Section XI, which entered into force on 2 April 2010; Section II, Section III, points 1 and

3, Section IV, points 1 to 21 and 23 to 27, Section V, Section VII, Section IX, and Section X,

which entered into force on 1 June 2010; Section I, Articles 1 to 16, Article 17(1) to (2), and

196

Articles 18 to 27, Section III, points 2 and 4, Section VI, and Section VIII, which entered into

force on 11 June 2010; and with the exception of Section I, Article 17(3) and (4), which

entered into force on 1 January 2011.

Act No 46/2011 Coll. entered into force on 1 April 2011.

Act No 130/2011 Coll. entered into force on 30 June 2011.

Act No 314/2011 Coll. entered into force on 1 January 2012.

Act No 394/2011 Coll. entered into force on 1 December 2011.


Act No 234/2012 Coll. entered into force on 31 September 2012.


Act No 132/2013 Coll. entered into force on 10 June 2013.

Act No 547/2011 Coll., as amended by Act No 440/2012 Coll., entered into force on

1 January 2014.


Act No 213/2014 Coll. entered into force on 1 August 2014, except for Section I,

Article 6(13), (16), (28), and (29) points 9, 25, 55, 106, and 107, and except for Section I,

Article 33d point 52, which shall enter into force on 1 January 2016.



Act No 35/2015 Coll. entered into force on 1 April 2015.

Act No 252/2014 Coll. entered into force on 1 November 2015.





Act No 90/2016 Coll. entered into force on 21 March 2016.

Act No 91/2016 Coll. entered into force on 1 July 2016.

Act No 125/2016 Coll. entered into force on 1 July 2016.




Act No 315/2016 Coll. entered into force on 1 February 2017.

Act No 2/2017 Coll. entered into force on 1 February 2017.


* * *

197

Annex to Act No 483/2001 Coll., as amended

SCHEDULE OF TRANSPOSED LEGALLY BINDING ACTS

OF THE EUROPEAN UNION

1. Directive 2001/24/EC of the European Parliament and of the Council of 4 April 2001 on the

reorganisation and winding up of credit institutions (OJ L 125, 5.5.2001, Special Edition, Chapter 6,

Volume 04).

2. Directive 2002/87/EC of the European Parliament and of the Council of 16 December 2002

on the supplementary supervision of banks, insurance undertakings and investment firms in

a financial conglomerate and amending Council Directives 73/239/EEC, 79/267/EEC, 92/49/EEC,

92/96/EEC, 93/6/EEC and 93/22/EEC, and Directives 98/78/EC and 2000/12/EC of the European

Parliament and of the Council (OJ L 35, 11.2.2003, Special Edition, Chapter 6, Volume 04).

3. Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on

markets in financial instruments amending Council Directives 85/611/EEC and 93/6/EEC and

Directive 2000/12/EC of the European Parliament and of the Council repealing Council Directive

93/22/EEC (OJ L 145, 30.4.2004, Special Edition, Chapter 6, Volume 07).

4. Directive 2005/1/EC of the European Parliament and of the Council of 9 March 2005

amending Council Directives 73/239/EEC, 85/611/EEC, 91/675/EEC, 92/49/EEC and 93/6/EEC

and Directives 94/19/EC, 98/78/EC, 2000/12/EC, 2001/34/EC, 2002/83/EC and 2002/87/EC in

order to establish a new organisational structure for financial services committees (OJ L 79,

24.3.2005).

5. Directive 2006/31/EC of the European Parliament and of the Council of 5 April 2006

amending Directive 2004/39/EC on markets in financial instruments, as regards certain deadlines

(OJ L 114, 27.4.2006).

6. Directive 2006/48/EC of the European Parliament and of the Council of 14 June 2006

relating to the taking up and pursuit of the business of credit institutions (recast) (OJ L 177,

30.6.2006).

7. Directive 2006/49/EC of the European Parliament and of the Council of 14 June 2006 on the

capital adequacy of investment firms and credit institutions (recast) (OJ L 177, 30.6.2006).

8. Directive 2007/44/EC of the European Parliament and of the Council of 5 September 2007

amending Council Directive 92/49/EEC and Directives 2002/83/EC, 2004/39/EC, 2005/68/EC

and 2006/48/EC as regards procedural rules and evaluation criteria for the prudential assessment of

acquisitions and increase of holdings in the financial sector (OJ L 247, 21.9.2007).

9. Directive 2009/111/EC of the European Parliament and of the Council of 16 September

2009 amending Directives 2006/48/EC, 2006/49/EC and 2007/64/EC as regards banks affiliated to

central institutions, certain own funds items, large exposures, supervisory arrangements, and crisis

management (OJ L 302, 17.11.2009).

10. Directive 2010/76/EU of the European Parliament and of the Council of 24 November 2010

amending Directives 2006/48/EC and 2006/49/EC as regards capital requirements for the trading

book and for re-securitisations, and the supervisory review of remuneration policies (OJ L 329,

14.12.2010).

198

11. Directive 2009/110/EC of the European Parliament and of the Council of 16 September

2009 on the taking up, pursuit and prudential supervision of the business of electronic money

institutions amending Directives 2005/60/EC and 2006/48/EC and repealing Directive 2000/46/EC

(OJ L 267, 10.10.2009).


amending Directives 98/26/EC, 2002/87/EC, 2003/6/EC, 2003/41/EC, 2003/71/EC, 2004/39/EC,

2004/109/EC, 2005/60/EC, 2006/48/EC, 2006/49/EC and 2009/65/EC in respect of the powers of

the European supervisory authority (European Banking Authority), the European supervisory

authority (European Insurance and Occupational Authority), and the European supervisory

authority (European Securities and Markets Authority) (OJ L 331, 15.12.2010).


amending Directives 98/78/EC, 2002/87/EC, 2006/48/EC and 2009/138/EC as regards the

supplementary supervision of financial entities in a financial conglomerate (OJ L 326, 8.12.2011).

14. Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on

access to the activity of credit institutions and the prudential supervision of credit institutions and

investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and

2006/49/EC (OJ L 176, 27.06.2013).

15. Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014

establishing a framework for the recovery and resolution of credit institutions and investment firms

and amending Council Directive 82/891/EEC and Directives 2001/24/EC, 2002/47/EC,

2004/25/EC, 2005/56/EC, 2007/37/EC, 2011/36/EC, 2011/35/EC, 2012/30/EU, and 2013/36/EU,

and Regulations (EU) No 1093/2010 and (EU) No 648/2012, of the European Parliament and of the

Council (OJ L 173, 12.06.2014).

16. Directive 2014/92/EU of the European Parliament and of the Council of 23 July 2014 on the

comparability of fees related to payment accounts, payment account switching and access to

payment accounts with basic features (OJ L 257, 28.8.2014).

* * *

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